All Rights Reserved
AccessEcon LLC 2006, 2008.
Powered by MinhViet JSC

John Gardner and Joshua R Hendrickson
''Staying when the Going Gets Tough: The Equivalent Predictions of Option and Search Theory on Migration During Economic Downturns''
( 2017, Vol. 37 No.3 )
We show that both option and search theory suggest that workers should be less likely to migrate out of labor markets in which there is greater uncertainty about future economic opportunities. The intuition for this result is that, the more volatile the labor market, the greater the likelihood of such opportunities improving in the future. This result weakens the standard prediction that workers should migrate out of markets experiencing relative economic downturns.
Keywords: migration, local labor markets, option theory, search models
JEL: J6 - Mobility, Unemployment, and Vacancies: General
R2 - Urban, Rural, and Regional Economics: Household Analysis: General
Manuscript Received : Jul 10 2017 Manuscript Accepted : Sep 27 2017

  This abstract has been downloaded 1033 times                The Full PDF of this paper has been downloaded 154262 times