Regional Labor Market Adjustments in the United States

Author/Editor:

Mai Dao ; Davide Furceri ; Prakash Loungani

Publication Date:

November 25, 2014

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

We examine patterns of regional adjustments to shocks in the US during the past four decades. We find that the response of interstate migration to relative labor market conditions has decreased, while the role of the unemployment rate as absorber of regional shocks has increased. However, the response of net migration to regional shocks is stronger during aggregate downturns and increased particularly during the Great Recession. We offer a potential explanation for the cyclical pattern of migration response based on the variation in consumption risk sharing.

Series:

Working Paper No. 2014/211

Subject:

Employment Labor Labor demand Labor force Labor markets Migration Population and demographics

English

Publication Date:

November 25, 2014

ISBN/ISSN:

9781498302715/1018-5941

Stock No:

WPIEA2014211

Pages:

51

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