Stranded! How Rising Inequality Suppressed US Migration and Hurt Those Left Behind
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Summary:
Using bilateral data on migration across US metro areas, we find strong evidence that increasing house price and income inequality has reduced long distance migration, the type most linked to jobs. For those migrating uphill, from a less to a more prosperous location, lower mobility is driven by increasing house price inequlity, as the disincentives from higher house prices dominate the incentives from higher earnings. By contrast, increasing income inequality drives the fall in downhill migration as the disincentives from lower earnings dominate the incentives from lower house prices. The model underlines the plight of those trapped in decaying metro areas—those “left behind”.
Series:
Working Paper No. 2019/122
Subject:
Housing prices Income inequality Migration National accounts Personal income Population and demographics Prices
English
Publication Date:
June 3, 2019
ISBN/ISSN:
9781498311373/1018-5941
Stock No:
WPIEA2019122
Pages:
34
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