Document Type

Report

Publication Date

1-2001

Number

340

Published As

Since Schultz' important paper on human capital (Schultz 1961), human migration has been an important topic of economic research. Much ofthe human capital literature on internal migration has emphasized the expected net earnings benefit as the majorfactor driving human migration decisions, e.g., see Schwartz (1976), Schlottman andHerzog (1981), Herzog and Schlottman (1984), Sandefur (1985), Pissarides ^d Wadsworth (1989), Bpijas, Bronars, and Trejo (1992), Detang-Dessendre and Molho (1999). Muchless emphasis has been givento the fixed costs associated with migration and role of location-specific amenities (Greenwood 1997). The objective of this paper is to present a model of long-distance, migration for a finitelife individual who consumes leisure, purchased goods, and local amenities and incurs significant fixed costs ofmoving and .empirical results from ahazard rate analysis ofresidence spells/internal migration using data on adult malesin the Panel ofIncome Dynamics Study (PSID) over a20 year period, The econometric results show astrong negative effect ofthe wage difference between the home/origin location and host locations and offixed costs associated with amove and apositive effect ofthe local crime rate on thehazard ofinternal migration. The story unfolds in the following sections.

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