Migration and Implicit Amenity Markets: Does Incomplete Compensation Matter?
Document Type
Article
Publication Title
Journal of Economic Geography
ISSN
1468-2702
Volume
3
Issue
3
DOI
10.1093/jeg/3.3.289
First Page
289
Last Page
307
Publication Date
7-1-2003
Abstract
We first develop an empirical approach for generating measures of wage over or under compensation (incomplete compensation) for location attributes. We then devise a method to test whether migration is influenced by incomplete compensation in wages for location characteristics. An intercity wage regression is estimated where fixed effects capture the impact of site characteristics on wages. We then regress the fixed effects on a comprehensive vector of site attributes, where the residuals from this stage capture incomplete compensation in wages. The derived measures of incomplete compensation are included in a standard microdata‐based discrete choice model of migration. The results suggest that incomplete wage compensation for site characteristics matters in migration decisions, and the findings are consistent with tendencies toward spatial equilibrium in the distribution of population.
Recommended Citation
Herrin, William E.; Clark, David E.; Knapp, Thomas; and White, Nancy, "Migration and Implicit Amenity Markets: Does Incomplete Compensation Matter?" (2003). School of International Studies Faculty Articles. 15.
https://scholarlycommons.pacific.edu/sis-facarticles/15
