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Working Paper
High-Skill Migration, Multinational Companies, and the Location of Economic Activity
Morales, Nicolas (2019-12-17)
This paper examines the relationship between high-skill immigration and multinational activity. I assemble a novel firm-level dataset on high-skill visa applications and show that there is a large home-bias effect. Foreign multinational enterprises (MNEs) in the US tend to hire more migrant workers from their home countries compared to US firms. To quantify the general equilibrium implications for production and welfare, I build and estimate a quantitative model that includes trade, MNE production, and the migration decisions of high-skill workers. I use an instrumental variables approach to ...
Working Paper , Paper 19-20

Report
The Welfare Effects of Encouraging Rural-Urban Migration
Lagakos, David; Mobarak, Mushfiq; Waugh, Michael E. (2022-01-04)
This paper studies the welfare effects of encouraging rural-urban migration in the developing world. To do so, we build and analyze a dynamic general-equilibrium model of migration that features a rich set of migration motives. We estimate the model to replicate the results of a field experiment that subsidized seasonal migration in rural Bangladesh, leading to significant increases in migration and consumption. We show that the welfare gains from migration subsidies come from providing better insurance for vulnerable rural households rather than correcting spatial misallocation by relaxing ...
Staff Report , Paper 635

Working Paper
Beautiful City: Leisure Amenities and Urban Growth
Salz, Albert; Carlino, Gerald A. (2019-03-12)
Modern urban economic theory and policymakers are coming to see the provision of consumer-leisure amenities as a way to attract population, especially the highly skilled and their employers. However, past studies have arguably only provided indirect evidence of the importance of leisure amenities for urban development. In this paper, we propose and validate the number of tourist trips and the number of crowdsourced picturesque locations as measures of consumer revealed preferences for local lifestyle amenities. Urban population growth in the 1990-2010 period was about 10 percentage points ...
Working Papers , Paper 19-16

Working Paper
Floating Population: Migration With(Out) Family and the Spatial Distribution of Economic Activity
Imbert, Clément; Monras, Joan; Seror, Marlon; Zylberberg, Yanos (2023-08-30)
This paper argues that migrants’ decision to bring their dependent family members shapes their consumption behavior, their choice of destination, and their sensitivity to migration barriers. We document that in China: (i) rural migrants disproportionately move to expensive cities; (ii) in these cities they live without their family and in poorer housing conditions; and (iii) they remit more, especially when living without their family. We then develop a quantitative general equilibrium spatial model in which migrant households choose whether, how (with or without their family), and where to ...
Working Paper Series , Paper 2023-26

Working Paper
Parental Proximity and Earnings after Job Displacements
Krolikowski, Pawel; Coate, Patrick; Zabek, Mike (2017-11-29)
Young adults, ages 25 to 35, who live in the same neighborhoods as their parents experience stronger earnings recoveries after a job displacement than those who live farther away. This result is driven by smaller on-impact wage reductions and sharper recoveries in both hours and wages. We show that geographic mobility, different job search durations, housing transfers, and ex-ante differences between individuals are unlikely explanations. Our findings are consistent with a framework in which some individuals living near their parents face a better wage-offer distribution, though we find no ...
Working Papers (Old Series) , Paper 1722

Journal Article
Mismatch of Jobs and People: Do Migration Constraints Put Racial Minorities at a Disadvantage?
Burns, Kalee; Hotchkiss, Julie L. (2020-06-12)
Using the American Community Survey between 2005 and 2017, this article explores the evidence for potential migration constraints by comparing distributions of people and jobs across race and education. Using the Delta Index of dissimilarity, it illustrates a greater distributional mismatch between workers and jobs among racial minorities, relative to White non-Hispanics. This mismatch suggests greater migration constraints among racial minorities.
Policy Hub , Volume 2020 , Issue 6 , Pages 19

Working Paper
The Economics of Internal Migration: Advances and Policy Questions
Jia, Ning; Molloy, Raven S.; Smith, Christopher L.; Wozniak, Abigail (2022-02-02)
We review developments in research on within-country migration, focusing on internal migration in the U.S. We begin by describing approaches to modelling individuals' migration decisions and equilibrium outcomes across local areas. Next, we summarize evidence regarding the impact of migration on individuals' outcomes, implications of migration for local labor market adjustment, and interactions between migration and housing markets. Finally, we discuss evidence on the efficacy of policies aimed at encouraging migration and conclude by highlighting important unanswered questions that are ...
Finance and Economics Discussion Series , Paper 2022-003

Working Paper
Parental Proximity and Earnings After Job Displacements
Krolikowski, Pawel; Zabek, Mike; Coate, Patrick (2019-08)
The earnings of young adults who live in the same neighborhoods as their parents completely recover after a job displacement, unlike the earnings of young adults who live farther away, which permanently decline. Nearby workers appear to benefit from help with childcare since grandmothers are less likely to be employed after their child's job displacement and since the earnings benefits are concentrated among young adults who have children. The result also suggests that parental employment networks improve earnings. Differences in job search durations, transfers of housing services, and ...
Finance and Economics Discussion Series , Paper 2019-062

Working Paper
The Effect of Immigration on Local Labor Markets: Lessons from the 1920s Border Closure
Abramitzky, Ran; Ager, Phillip; Boustan, Leah; Cohen, Elior; Hansen, Casper (2021-09-30)
In the 1920s, the United States substantially reduced immigration by imposing country-specific entry quotas. We compare local labor markets differentially exposed to the quotas due to variation in the national origin mix of their immigrant populations. U.S.-born workers in areas losing immigrants did not gain in income score relative to workers in less exposed areas. Instead, in urban areas, European immigrants were replaced with internal migrants and immigrants from Mexico and Canada. By contrast, farmers shifted toward capital-intensive agriculture, and the immigrant-intensive mining ...
Research Working Paper , Paper RWP 21-09

Working Paper
The supply and demand of skilled workers in cities and the role of industry composition
Brinkman, Jeffrey (2014-10-20)
The share of high-skilled workers in U.S. cities is positively correlated with city size, and this correlation strengthened between 1980 and 2010. Furthermore, during the same time period, the U.S. economy experienced a significant structural transformation with regard to industrial composition, most notably in the decline of manufacturing and the rise of high-skilled service industries. To decompose and investigate these trends, this paper develops and estimates a spatial equilibrium model with heterogeneous firms and workers that allows for both industry-specific and skill-specific ...
Working Papers , Paper 14-32

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