Abstract
In the past traditional economic theory assumed that labor force migration is efficient, from both an individual and societal perspective. However, a considerable body of recent empirical literature has evolved that questions the equilibrating role of the market mechanism in redistributing labor resources across space. Greenwood (1975), perhaps, was the first to survey this work that challenges the efficacy of interregional labor force migration. In this respect, he argues that research in this area is difficult to characterize in that many of the investigations derive, or infer, implications relevant to migration “effectiveness” in an indirect fashion from empirical studies of related topics. Perhaps the best examples of this are the many studies that attribute sizeable and persistent interregional (real) wage differentials to market failures in migration. On the other hand, simultaneous equations models of migration and labor market conditions provide direct evidence of adjustment tendencies of interregional migration.
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Van Dijk, J., Folmer, H., Herzog, H.W., Schlottmann, A.M. (1989). Equilibrating and Adjustment Tendencies of Interregional Migration: An Introduction. In: Van Dijk, J., Folmer, H., Herzog, H.W., Schlottmann, A.M. (eds) Migration and Labor Market Adjustment. Springer, Dordrecht. https://doi.org/10.1007/978-94-015-7846-2_1
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DOI: https://doi.org/10.1007/978-94-015-7846-2_1
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