The disequilibrium and equilibrium models of migration disagree on how local amenities and labor market dynamics influence regional in-migration. Research into migration motives and decision-making show that migration for some individuals is mainly driven by proximity to the labor market, while migration for others is mainly amenity driven. As this is an ongoing process, it should result in a spatial sorting based on migration motives. This means that global models explaining in-migration underestimate the influence of both factors through averaging out of the coefficients across these diverse regions. In this article, we compare a local and a global model explaining in-migration through residential quality and labor market proximity. We find significant differences in the influence of the explanatory variables between regions. Demonstrating this spatial heterogeneity shows that the impacts of factors underpinning migration vary across regions. This result highlights the importance of the regional context in anticipating and designing regional policy concerning population dynamics.
Ethnic differentials on the labor market in the presence of asymmetric spatial sorting: Set identification and estimation
