Interregional Migration and Regional Economic Structure
Chapter 3 explores the role of regional economic structure in the wage differential driven migration. It mainly focuses on the diminishing role of wage differential driven migration with the possible complementary roles of interregional trade and regional economic structures. Negative correlation between interregional trade and wage differentials is an evidence for the confining role of the trade on interregional wage differentials. If wage differentials within the inertia range are continuously confined to certain level due to the role of interregional trade, wage differentials fail to explain the interregional migration as proposed by the utility maximization theory. Regional economic structure plays an important role to explain inter-MSA migration.
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University of Illinois at Urbana-Champaign