Declining Migration within the US: the Role of the Labor Market Raven Molloy Federal Reserve Board of Governors Christopher L. Smith Federal Reserve Board of Governors Abigail Wozniak University of Notre Dame, NBER and IZA Preliminary: Not for Circulation or Citation I. Introduction Declines in internal migration since the mid-2000s have attracted much attention because they coincided with a dramatic housing market contraction and deep economic recession (Batini et. al. 2010, Frey 2009, Kaplan and Schulhofer-Wohl 2010). However, in earlier work we demonstrated that these declines appear to be the continuation of a longer-run trend (Molloy, Smith and Wozniak 2011). Specifically, internal migration within the United States has fallen continuously since the 1980s, reversing the upward trend that occurred over the rest of the 20th century. In this paper, we assess several explanations for the secular decline in migration, focusing on factors that may have played a role throughout the entire thirty year period. It is of course possible that multiple factors came together to depress migration in different sub-periods of the three decades that are our focus. However, in the search for explanations, it seems efficient to begin by examining ideas that can account for a large portion of the time period in question. We begin by summarizing the contributions of a number of demographic and socioeconomic factors to the change in migration from the 1980s to the 2000s in a simple Oaxaca decomposition framework. We find sharp differences across long-distance (inter-county 1 or inter-state) migration and migration over shorter distances (within county). For intra-county migration, compositional changes in age, homeownership, and other observable characteristics explain a large portion (nearly 80 percent) of the decline since 1980. By contrast, we find that changes in age and other demographics only explain a small part of the decline in long-distance migration. Instead, the results point to a substantial drop in the probability of migration that is common among all of the demographic and socioeconomic groups in the model. Motivated by the relative difficulty for demographic and socio-economic characteristics to explain long-distance moves, we proceed to investigate more carefully other explanations for declining long-distance moves. A number of factors suggest that the labor market has played a key role. First, the decline in migration was more pronounced for labor force participants. Second, it has also been sharper for longer distance moves (i.e. across states or metropolitan areas), which tend to be related to labor market reasons more often than shorter distance moves (i.e. within county). Third, other measures of churning in the labor market, such as quits and employer-to-employer flows, have also trended down during this period. Using individual-level and state-level data, we present evidence that labor market transitions, such as employerswitching and occupation-switching, and geographic mobility are correlated. In our view, the descriptive evidence suggests that an explanation for the long-run decline in migration should have two broad features. First, the mechanism for the long-run decline is likely to be found in the labor market, as opposed to the housing market or in compositional changes within the population. And second, the mechanism is likely to have led to a decline in labor market turnover more generally. One reasonable candidate for such a mechanism is a rise in returns to specific human capital. The remainder of the paper assembles evidence on how returns to several measures of 2 specific human capital may have changed over time. We use several waves of the National Longitudinal Surveys to compare returns to months of employment on the current job across multiple cohorts. We find that young workers in the later 1980s, early 1990s, and early 2000s receive a return to job experience that is nearly double that for similar workers in the 1970s. We also use the Displaced Worker Survey to examine returns to industry experience. Again, we find returns to this type of specific human capital that are much higher in the mid-2000s than in earlier periods. The evidence assembled so far is preliminary, but examining the role of changing returns to specific human capital in declining migration seems a promising avenue for future research. The migration decline poses an interesting puzzle since some trends over the last three decades, such as the use of the internet by employers and job seekers, seem likely to have raised migration rates. We hope in future work to expand our investigation into specific human capital as a mechanism leading to the observed widespread slowing in labor market churning as well as to more fully account for the historic decline in migration within the US. II. How much of the decline in migration can be explained by demographic and socioeconomic trends? A natural explanation for the decline in migration is changing demographic or socioeconomic trends, as they have slowly been shifting in favor of groups with lower mobility rates. Two prominent trends in this regard are the shifts toward higher shares of homeowners and older adults. Because demographics are commonly thought to be the primary drivers of declines in migration, we begin with an analysis of these factors. If demographic shifts explain the bulk of 3 the decline, then there is no puzzle remaining. If, however, these factors fail to explain a preponderance of the trend in migration, then another explanation is needed. To assess the importance of a large number these factors in a single framework, we use an Oaxaca decomposition to examine the change in migration from the 1980s to the 2000s, first for within-county migration and secondly for interstate migration. For each time period, we estimate an OLS regression of the probability of migration on a number of characteristics (to be discussed below). Then we apportion the change in the probability of moving into a portion attributable to the change in the quantity of each independent variable (i.e. the change in the characteristics of the population), a portion attributable to the change in the estimated coefficient of each independent variable (i.e. the change in the propensity to move of the population with a given characteristic), and a portion attributable to the interaction between quantities and coefficients. Specifically: Y00 s Y80 s X 00 s X 80 s 80 s 00 s 80 s X 80 s X 00 s X 80 s where 00 s 80 s is the average probability of moving in the decade denoted by tt, the independent variables in the same period, and [2] is the average of is the vector of estimated coefficients from the regression of Y on X using a single decade of data. Because the CPS is a small sample, we estimate the OLS regressions using pooled data from the 1981-1989 and 2002-2010 time periods.1 Including multiple years in each sample period also allows us to smooth through any cyclical changes in migration that might affect the comparison of any two short time periods. The regressions include year indicators so that the coefficients are identified from variation in the independent variables within a given year. The coefficient estimates from the underlying OLS regressions are reported Appendix Table 1. We normalize the coefficients so that they reflect 1 The CPS did not include the migration question in 1985, so the 1980s sample includes 8 years of data. To be symmetric, the 2000s sample also spans 9 years but omits the fifth year (2006). 4 deviations from the average propensity to move in each sample period rather than deviations from the propensity to move of a reference category. In this way, the results are not sensitive to which characteristics are chosen as the reference category.2 Table 1 shows the results of the Oaxaca decomposition for intra-county migration. Column 5 shows the contributions of changes to quantities. The explanatory variables can account for most of the 1.6 percentage point drop in migration; changes in the distribution of the explanatory variables, and changes in the coefficients for the variables can each explain 0.7 to 0.9 percentage point of the decline (the contribution of the interactions is positive, and the constant is -0.3 percentage point, indicating that less than 20 percent of the decline in intracounty migration is unexplained by these variables). Of note, the rise in homeownership contributes 0.4 percentage point to the decline in migration (homeowners are less likely to move than renters), the age distribution of the population contributes another 0.45 pp (the share of young people, who are more likely to move, falls), and the education composition of the population contributes 0.35 percentage point (a shift towards more educated, who are more likely than the less-educated to move short distances). Column 6 of the table reports the contribution of changes in the coefficients. Because we have normalized the coefficients, these contributions can be interpreted as the deviation in the propensity to move of a given category from the average propensity to move. For example, the probability of moving among young people has fallen more than average, contributing 0.4 percentage point to the drop in aggregate migration. Other notable results are that the propensity to move of people with at least a college degree has fallen more than average, as it has for individuals living without kids and individuals who are currently employed. In sum, the 2 Oaxaca decompositions also depend on the weights that are used—for example, whether the change in a characteristic is weighted by its 1980s coefficient, its 2000s coefficient, or an average of the two. The results reported below are robust to various weighting schemes. 5 changing demographic and socio-economic composition of the population, along with changes in the propensity to move short distances for each of these groups, can explain the bulk of the decline in intra-county migration. In contrast to the results for short-distance migration, we are less successful at explaining long-distance moves with these variables. Table 2 repeats the same Oaxaca decomposition exercise as above, except with inter-state migration as the dependent variable. The overall decline in inter-state migration from the 1980s to the 2000s is 0.9 percentage point. The fifth column of Table 2 shows the contributions of the changes in quantities. Of note, the rise in homeownership contributes 0.1 pp to the decline in migration, the age distribution of the population contributes 0.1 pp, and the distribution of race/ethnicity in the population contributes 0.1 pp (a shift from white, non-Hispanic to Hispanics, who are more likely to move). Although these factors cumulate to about 0.3 pp—roughly one third of the drop in migration between these two periods—changes in the quantities of other characteristics, such as the increase in educational attainment, have mostly offset the negative effect of these factors. In total, changes in the demographic and socio-economic distribution of the population—in the absence of other changes—is predicted by this decomposition to have pushed up the inter-state migration rate by about 0.3 percentage point. Turning to the contribution of changes in the coefficients (column 6), the changes in interstate migration do not appear to be related to any particular demographic or socioeconomic group. Rather, the constant contributes -1.4 pp to the decline in migration. In other words, the propensity to migrate of an individual with average characteristics fell substantially. This result tells us that, by and large, the decrease in interstate migration was common across all 6 demographic and socio-economic groups in the model.3 Nevertheless, we do find minor roles for a few factors: the propensity to move of renters has fallen more than average ,as it has for young people, married individuals, white non-Hispanic people, for individuals who do not live in dualearner households, and to a lesser degree, for individuals in metropolitan areas. Individuals in the South Atlantic, West South Central and Mountain Census Divisions have also become a bit less likely to move than average. In sum, the Oaxaca decompositions demonstrate that the vast majority (80 percent) of the downward trend in intra-county migration is explained after accounting for a variety of demographic and socioeconomic factors. On the other hand, interstate migration is little explained by these factors. These findings are robust to calculating the decomposition in several ways and to using other time periods. Because labor market transitions (from employment to non-employment, or the reverse; or changes in employers or career paths) are more likely to be associated with longer-distance moves, it seems possible that these two phenomena may be related, and in the next section we turn to labor-market related explanations in an attempt to better understand the puzzling decline in longer-distance migration.4 III. Labor-market related explanations for the decline in migration There are several reasons to think that lower migration rates may be related to changes in the labor market. First, as shown by Figure 1, job-related reasons are the most-common explanation for inter-state moves, and they are less important for migration over shorter 3 If the decrease in migration were concentrated in particular groups, then we would have found larger contributions from the change in the coefficients for those groups, and correspondingly a smaller contribution from the change in the constant. 4 X percent of adults who moved across counties or states in the previous year also changed employers or occupations; X percent of adults who changed employers or occupations also moved across counties or states. 7 distances. In addition, job-related migration has trended down from 2000 to 2010 (this question was not asked in prior years). Second, the decline in migration is similar to the downtrend in many measures of labor market transitions, such as employer-to-employer flows and separation rates. For instance, in Figure 2 we plot the fraction of the population (16 and older) that changed employers or changed occupations in the previous year. Since labor market transitions are often associated with geographic moves, it seems possible that these two phenomena may be related. To the extent that trends in migration and job transitions are linked, better understanding of one may aid the understanding of the other. As additional evidence on the potential link between migration and job transitions, we regress annual migration rates for a state on a variety of variables related to job transitions and other proxies for structural change in the labor market, as well as state and year fixed effects, state time trends, and other controls.5 The results are shown in Table 3. We find a statistically significant, positive relationship between the fraction of a state’s population that changed firms or occupations in the previous year and fraction that moved into the state or across counties within the state (columns 1 and 2). Thus, states that experienced larger declines in employer-toemployer (E-to-E) transitions or in occupational switching also experienced larger declines in long-distance migration. Specifically, columns 1 through 4 show that the declines in E-to-E and occupational switching explain one-quarter to one-half the observed total decline in migration rates of 0.018. These results are robust to the inclusion of state trends. However, the fraction that transitioned from employment to non-employment is not related to migration rates (column 3). 5 Additional controls are: the fraction of the state unemployed, the log of average annual income for the state, and the fraction of the state that is young (under 21) and of prime working age (21-64). 8 We can get a different perspective on the importance of labor-market transitions by including a few other variables in the Oaxaca decompositions. The initial specification included indicators for current employment status (specifically employed, unemployed, military or not in the labor force). These variables did not have a large contribution to the change in migration, but they do not directly reflect labor market transitions. The CPS does not report employment status in the prior year, so we can only calculate these transitions for individuals who were privately employed in the previous year. The drop in the average interstate migration rate for individuals who were employed in the previous year was 1.2 percentage points, somewhat larger than the aggregate decline. The transitions that we calculate are variables for whether an individual changed 1-digit occupation, changed employers, or transitioned from employed to not working.6 Figure 2 shows that all three of these measures decreased from the 1980s to the 2000s. As shown in Table 4, the downward trends in changing employers and changing occupation each contributed 0.1 pp to the drop in interstate migration; the contribution of exiting employment is relatively small because the probability of moving conditional on exiting employment is not as high as it is for the other job transitions. Turning to the coefficients, the propensity to migrate of people who change jobs fell relative to the average, reducing migration by 0.1 pp. All together, it seems like declining labor market transitions can account for about one fifth of the drop in migration of the employed population in the microdata that underpin these decompositions. This is a smaller role for labor market transitions than suggested in the cross-state regressions of Table 3. However, Moscarini and Thomsson (2007) show that typical measures of occupation 6 We cannot examine changes in occupation at a more detailed level or changes in industry because the detailed occupation codes and the industry codes are not consistently defined over time. The measure of job changing is calculated from the number of employers in the previous year. According to the CPS documentation this variable is meant to reflect job changes across employers so multiple job holders are coded as having only one employer. 9 and job switching suffer from high degrees of measurement error. This error will tend to attenuate their roles in the Oaxaca decompositions, which are based on individual-level data. The cross-state regressions are based on comparisons across rates of switching and migration at the state level, which we expect to improve the signal-to-noise ratio in observed job and occupation changing. Of course, the simple correlation between labor market transitions and geographic migration does not explain why these flows have been falling. Another aspect of the labor market that might be related to falling migration rates is the structural shift in the distribution of occupations. Specifically, the share of adults in lowerskill/lower-paying jobs (e.g. food service, personal care services, cleaning services) and higherskill/higher-paying jobs (e.g. professional, managerial, and design jobs) have both grown, while the share of adults in middle-skill/middle-paying jobs (e.g. administrative, manufacturing, and sales jobs) has fallen. This “hollowing out” or polarization of the occupational distribution is thought to be due to the increasing use of computers, ease of automation, and ease of off-shoring, which raises demand for higher-skill jobs, reduces demand for the middle-skill jobs, and displaces some workers formerly employed in middle-skill jobs into lower-skilled ones.7 This shift might have reduced migration if , in the past, less-educated workers were likely to migrate for middle-skill jobs. The elimination of large shares of these jobs could then lower migration rates by reducing the set of “migration worthy” jobs for middle skill workers. However, we find no empirical support for this idea, as there is no significant relationship between a state’s migration rate and the fraction employed in middle-skill or manufacturing jobs (an alternative proxy for middle-skill jobs). In addition, when we include indicators for various middle-skill or 7 Autor, Katz, and Kearney (20XX). AEA Papers and Proceedings. 10 low-skill occupations in the Oaxaca decompositions, they do not make any notable contributions to the drop in migration. IV. Specific human capital as the link between labor market transitions and mobility? The expanded Oaxaca decompositions described above suggest that the decline in labor market transitions can explain a bit of the total decline in migration, but the additional contribution is not that substantial. Nonetheless, we think it is valuable to spend additional effort understanding the links between labor market flows and geographic mobility because of the striking similarities in the trends for these two types of flows. But what might cause a secular decline in both labor market and migration flows? Kaplan and Schulhofer-Wohl (2011) propose that the decrease in migration can be explained by a “flattening world.” Their idea is that job types have become less concentrated in particular metropolitan areas, so that an individual wishing to change occupation or industry is more likely to find their desired new job in the same metropolitan area where he or she already resides. If this were the case, we would expect the propensity to move of people who change occupation or industry to have fallen relative to others. While we found some evidence of this effect in our Oaxaca decomposition, its contribution to the aggregate decline in migration over our period of interest was relatively small. Moreover, this theory cannot explain why the rate of job transitions has also fallen substantially. An alternative possibility is that the returns to specific human capital (such as firmspecific human capital) may have risen over time. If so, workers would be less likely to change jobs and, since long-distance migration frequently occurs alongside job changes, migration across metropolitan areas would fall as well. For now, we use the term “specific human capital” 11 (SHC) broadly to encompass firm, industry, occupation, and location specific capital–any skills that are not fully portable across firm, industry, occupation, or spatial boundaries. While our Oaxaca decompositions quantified the contribution of some of these labor market transitions, they were only for a selected sample and we could not robustly include changes in industry or job. The theory that returns to SHC have increased over time has two broad characteristics we seek in a potential explanation for declining migration and labor market turnover. It is obviously a labor market phenomenon, and one that could easily apply to many groups of labor market participants. It also has the potential to lead to a general decline in job changing across a range of categories as it raises the benefits of staying in one’s current job relative to those of switching to a new job. As this is preliminary work, we have simply begun by looking for evidence of whether there have been changes in the returns to SHC over time. Some well-known work on trends in wage inequality (Katz and Murphy, 1992) finds rising returns to general labor market experience (typically measured as Mincerian approximated experience), but we have found no research identifying how the returns to SHC have changed over time. We are ultimately interested in testing for changes over time in returns to the several types of SHC. For this reason, we turned to the National Longitudinal Surveys (NLS). The NLS are comprised of seven different surveys, each named for a different set of cohorts that were followed longitudinally. Information varies across the surveys, but a central focus of each NLS is to follow workers as they transition into and out of employment, jobs, and training. The NLS offer the possibility of observing an individual’s wages for a given job alongside information on how long an individual has held the job, how long he has worked in the 12 same industry and occupation as the current job, and how long he has worked in his local labor market. This detailed work history potentially allows us to separately identify returns to firm (job), industry, occupation, and location specific human capital. Moreover, we can obtain estimates for workers of similar ages separated across time by using data from multiple NLS cohorts. We use data from four cohorts: the NLS Young Women and Young Men, and the National Longitudinal Surveys of Youth 1979 and 1997.8 We present preliminary results from this strategy in Table 5, where we have estimated a simple Mincerian wage equation on young workers. The overlap in respondent ages across the surveys limits the comparable samples that we can construct to young workers. The greatest limitation comes from the NLSY97, where the oldest respondents in the most recent survey wave are only 28. We therefore draw the sample of young workers from the NLSY97 ages 25 to 28 and construct a comparable sample in the NLSY79 using the same age restriction. The top panel shows estimated returns to an additional month of tenure on an individual’s current or most recent job (called the main job in most NLS) estimated from the full sample in each NLS cohort. Estimates in the NLS-YM and NLS-YW samples are very similar, about 0.5 percent per additional month of job tenure, which corresponds to 6 percent higher wages for an additional year of tenure. Questions about job tenure were not asked in every year of these surveys, but they were asked of both male and female NLS respondents for several years over the 1970s. Therefore these figures are likely reliable estimates of the return to job tenure during that decade. The years in which the NLSY79 cohort was aged 25-28 spanned the years 1982 to 1993, or approximately ten years after then analogous years for the YM and YW cohorts. Returns in 8 We may also use the NLS Mature Women and the NLSY79-Child files. The Older Men sample does not contain observations that overlap with any of the relevant age groups in the other surveys. 13 the NLSY79 sample are markedly higher than those for the earlier cohorts. For the 79 cohorts, returns to an additional month on the job were .86 percent, or 10.3 percent for an additional year on the job. The confidence intervals are sufficiently narrow to suggest that returns to job experience in the decade of the late 1980s and early 1990s were statistically significantly higher than in the 1970s. The NLSY97 respondents entered the labor market 15 to 20 years after the 1979 cohort, and therefore their estimated returns reflect conditions in the second half of the 2000s. Returns to job specific tenure remain higher for this group than for the older NLS-YM and YW cohorts at the same period in their lifecycle. Each additional month on the current job leads to 0.79 percent higher wages, which equates to a 9.5% return to an additional year on the job. The bottom panel repeats the entire analysis for a subsample of respondents who likely have higher labor force attachment on average: white males not enrolled in school. The point estimates are quite similar across the full and restricted samples. Members of the 97 cohort saw returns that were lower (though not likely significantly so) than those for the 79 cohort, but that were still well above returns for the older cohorts. This result is suggestive that returns to job SHC have been higher in the late 1980s to late 2000s, when migration was declining, than in earlier years. However, returns to job tenure for the most recent cohort (97) seem at odds with the continued decline in migration during this period because they were lower than for the 79 cohort. Moreover, average job tenure is lower in the 97 cohort, suggesting more labor market transitions by this measure. In future work, we will more thoroughly assess whether and how these changes may have contributed to declining overall migration rates. We will also explore in more detail how various components of job SHC have changed over time. 14 Finally, it is worth noting that a limitation to all NLS is the high level of attrition that typically occurs in longitudinal surveys. Since migration is a common reason for sample attrition, the migrants who remain in the NLS may be a selected group. Also, workers with higher rates of return to their specific human capital are less like to leave their jobs and locations. Together, these patterns might result in overestimates of the returns to SHC within a given cohort of the NLS since stayers are more likely to be observed as the survey progresses. However, if anything, this bias should abate over subsequent surveys, as administrators improve retention techniques and as electronic communication and the internet make finding respondents after a move much easier. Consequently, we may be underestimating the change in returns to SHC across NLS cohorts. Another source of evidence on changing returns to SHC over time is the Displaced Worker Survey (DWS). The DWS is a supplemental survey for the Current Population Survey (CPS), and focuses on workers who were displaced from a job in the last year for no fault of their own, e.g. due to a plant closing. For those who are identified as displaced workers, the survey includes questions about current salary, occupation, and industry, as well as the same information for the job that they were displaced from. Hence, using the DWS we can calculate the change in the wage experienced by a displaced worker, and the relationship between the wage differential and whether the worker changed occupation or industry. While changing occupation or industry is surely not exogenous, in the absence of a convincing instrument we rely on the argument that displacement due to an event such as a plant closing is likely exogenous and so occupation/industry switching for this sample is likely to suffer from less bias than for the population of all job switchers. 15 To assess the relationship between the change in wage that a displaced worker experiences and whether the worker changed occupations or industries, and whether this has changed over time, we pool the DWS sample from 1994, 1996, 1998, 2004, 2006 and 2008 (the DWS is only administered every two years), and regress the difference in current log wage and previous log wage on whether the individual changed industry/occupation, this industry/occupation change dummy interacted with whether the observation is from 2004, 2006, or 2008, state and year fixed effects, experience (age – years of education – 6) and experience squared, years at previous employer and its square, and dummies for educational attainment, race, sex, and marital status. We limit the sample to adults 21 years of age or older. Starting with the industry change variable, changing industry is associated with a wage decline of between 5 to 7 percent, depending on the sample (male, female, or pooled) and whether the occupational change variable is also included (see Table 6). However, there is no evidence that the wage penalty to changing industry changed much from the 1990s to the 2000s (the coefficient on the interaction term is insignificant—negative when entered separately, and positive when the occupational change variable is also included). The story is different when considering the wage penalty associated with an occupational change. There appears to be no wage penalty associated with changing an occupation in the 1990s sample, but a sizeable one (5 to 8 percent) in the 2000s (adding the coefficient on occupational change and its interaction). This finding persists even after including the industry change variable as well. We tentatively view this evidence as suggesting that the penalty associated with changing occupation has increased, consistent with our findings from the NLS that the returns to tenure at a specific employer have also increased. To date, the literature on firm-specific, industry- 16 specific, or occupation-specific human capital has focused mainly on identifying and understanding these forms of specific human capital. Neal (1995) and Parent (2000) both argue that observed returns to job SHC are in fact driven by industry SHC. Recently, Kambourov and Manovskii (2009) find an important role for occupation SHC, echoing earlier arguments in Shaw (1984, 1987). Importantly, they find large returns to occupation SHC once the data have been corrected for a high degree of measurement error. Their results are on the order of a 20% return to 5 years of occupational experience. This estimate is still smaller than our estimate of returns to job tenure in the NLSY97, but given that all respondents in our sample are young and therefore likely to be on the steep portion of the returns curve, our large estimates may be reasonable. To our knowledge, there is no research identifying how the returns to SHC have changed over time. However, the literature illustrates the importance of carefully identifying the various sources of SHC and examining their contributions to wages separately. Following this literature, we plan to refine our results from the NLS and DWS by credibly documenting the evolution of various forms of SHC since the 1980s. To summarize, the striking confluence of trends in job transitions and migration, combined with the fact that neither trend is explainable by demographic or socio-economic shifts, is strongly suggestive of a link between the two. Even though including these job transitions in an Oaxaca decomposition only explains an additional 20 percent of the decline in migration, the CPS data on which the decompositions are based do not allow us to include all types of labor market transitions (such as labor force entry). Moreover the available information on industry and occupation transitions are not as detailed as we would like. Consequently, one avenue that we plan to explore is to estimate similar Oaxaca decompositions in the NLS data. 17 The preliminary evidence that we have presented here suggests that rising returns to SHC may be a promising avenue for further exploration. Outline of further work to do: Model/theory Develop a (simple) model of how an increase in the return to firm/industry/occupation specific human capital would reduce migration. Think about why the return to specific human capital has risen. Could it be related to the much-discussed rise in the return to education? Better estimates of the link between migration and labor market transitions Estimate Oaxaca decompositions of interstate migration using the NLS/NLSY, which can include better measures of labor market transitions Replicate the state-level regressions with IRS migration data, since the CPS appears to overstate the downward trend in migration. Improve our understanding of the downward trend in labor market transitions Estimate Oaxaca decompositions of labor market transitions using the CPS and/or NLS/NLSY Investigate the role of employer-provided health insurance in preventing people from changing jobs and therefore moving long distances. Better estimates of the return to specific human capital 18 Separate the returns to job tenure into returns to industry, occupation and job (also possibly location) Estimate the return to job tenure for NLSY79-Child, which would give us another cohort of young workers for the 1990s. 19 References Batini, Nicoletta, Oya Celasun, Thomas Dowling, Marcello Estevao, Geoffrey Keim, Martin Sommer and Evridiki Tsounta. 2010. “United States: Selected Issues Paper.” International Monetary Fund Country Report 10/248. Frey, William H. 2009. “The Great American Migration Slowdown: Regional and Metropolitan Dimensions.” http://www.brookings.edu/reports/2009/1209_migration_frey.aspx Kambourov, G. and Manovskii, I. 2009. “Occupational Specificity of Human Capital.” International Economic Review. 50(1): 63-115. Kaplan, G. and Schulhofer-Wohl, S. 2011. “Migration in a Flattening World.” SLIDES only. Presented at SED Conference July 2011. Katz, L. and Murphy, K. 1992. “Changes in Relative Wages, 1963-1987: Supply and Demand Factors.” The Quarterly Journal of Economics. 107(1): 35-78. Molly, R.; Smith, C. L.; and Wozniak, A. 2011. “Internal Migration in the US.” Journal of Economic Perspectives. 25(3): 173-196. Moscarini, G. and Thomsson, K. 2007. “Occupational and Job Mobility in the US.” Scandinavian Journal of Economics. 109(4): 807-836. Neal, D. 1995. “Industry-Specific Human Capital: Evidence from Displaced Workers.” Journal of Labor Economics. 13(4): 653-677. Parent, D. 2000. “Industry-Specific Capital and the Wage Profile: Evidence from the National Longitudinal Survey of Youth and the Panel Study of Income Dynamics.” 18(2): 306-323. Shaw, K. 1984. “A Formulation of the Earnings Function Using the Concept of Occupational Investment.” Journal of Human Resources. 19(3): 319-340. Shaw, K. 1987. “Occupational Change, Employer Change, and the Transferability of Skills.” Southern Economic Journal. 53(3): 702-719. 20 Table 1: Oaxaca decomposition of intra‐county migration 1981‐1989 Age distribution Age 25‐34 Age 35‐44 Age 45‐64 Age 65+ Education No high school degree High school degree, no college Some college College degree Racial composition White Black Hispanic Asian Marital status Married Separated/Divorced Single Kids in household Kids No Kids Live in dual‐earner household Dual earners No dual earners Homeownership status Renter Owner Income quintile 1st 2nd 3rd 4th 5th Employment status Employed Unemployed Military Not in labor force Geography (Census divisions) New England Middle Atlantic East North Central West North Central South Atlantic East South Central West South Central Avg. move rate Pop. share 0.17 0.09 0.05 0.03 0.08 0.10 0.10 0.09 0.08 0.11 0.14 0.12 0.07 0.12 0.14 0.10 0.08 0.08 0.09 0.19 0.05 0.08 0.08 0.09 0.10 0.08 0.10 0.16 0.13 0.06 0.08 0.09 0.07 0.06 0.08 0.08 0.08 0.28 0.22 0.31 0.19 0.26 0.02 0.16 0.11 0.80 0.10 0.06 0.03 0.68 0.20 0.12 0.38 0.62 0.31 0.69 0.28 0.72 0.13 0.18 0.20 0.23 0.25 0.60 0.04 0.00 0.36 0.07 0.93 0.05 0.16 0.18 0.07 0.17 Contribution of changes in: Quantities Coefficients 2002‐2010 Avg. move rate Pop. share 0.15 0.08 0.04 0.02 0.09 0.07 0.07 0.07 0.06 0.10 0.11 0.09 0.05 0.09 0.13 0.09 0.06 0.05 0.08 0.18 0.04 0.08 0.08 0.08 0.07 0.05 0.08 0.13 0.10 0.05 0.06 0.07 0.06 0.05 0.07 0.06 0.07 0.21 0.22 0.38 0.19 0.14 0.31 0.26 0.19 0.71 0.11 0.12 0.05 0.62 0.21 0.16 0.33 0.67 0.32 0.68 0.26 0.74 0.12 0.20 0.22 0.23 0.24 0.63 0.04 0.00 0.33 0.08 0.91 0.05 0.14 0.16 0.07 0.19 21 ‐0.45 ‐0.47 0.03 ‐0.21 0.19 0.07 0.05 0.01 0.00 0.01 0.05 0.00 0.01 0.04 0.01 ‐0.03 0.03 ‐0.01 ‐0.06 0.03 0.01 0.01 ‐0.02 ‐0.01 ‐0.01 ‐0.38 ‐0.19 ‐0.19 0.03 0.01 0.00 0.01 0.01 0.01 ‐0.36 ‐0.26 ‐0.10 0.00 0.00 0.14 0.01 0.08 0.00 0.00 0.00 0.00 ‐0.01 ‐0.01 ‐0.40 ‐0.11 0.15 0.34 ‐0.49 ‐0.18 ‐0.04 0.01 ‐0.28 0.23 0.16 0.17 ‐0.09 ‐0.01 ‐0.10 ‐0.04 ‐0.13 0.08 ‐0.17 0.21 ‐0.39 0.13 ‐0.08 0.21 0.03 ‐0.02 0.04 ‐0.07 0.11 0.06 ‐0.08 ‐0.14 ‐0.01 ‐0.21 ‐0.24 0.02 ‐0.01 0.03 ‐0.04 0.04 0.13 0.03 ‐0.02 0.02 0.03 ‐0.11 Mountain Pacific Metropolitan area status Lives in metro area Doesn't live in metro area Constant Total 0.08 0.11 0.12 0.11 0.06 0.10 0.05 0.15 0.07 0.09 0.10 0.09 0.06 0.11 0.07 0.16 0.06 0.01 0.05 0.03 0.03 ‐0.88 Note: Oaxaca decompositions also include year fixed effects. The contribution of the interactions is not listed. 22 0.00 ‐0.15 0.04 0.06 ‐0.02 ‐0.27 ‐0.99 Table 2: Oaxaca decomposition of inter‐state migration 1981‐1989 Age distribution Avg. move rate Contribution of changes in: Quantities Coefficients 2002‐2010 Pop. share Avg. move rate Pop. share Age 25‐34 0.04 0.28 0.03 0.21 ‐0.09 ‐0.11 ‐0.01 ‐0.14 Age 35‐44 0.03 0.22 0.02 0.22 0.01 ‐0.04 Age 45‐64 0.01 0.31 0.01 0.38 ‐0.04 0.04 Age 65+ 0.01 0.19 0.01 0.19 0.05 0.14 ‐0.03 0.64 Education No high school degree 0.01 0.26 0.01 0.14 ‐0.20 0.37 High school degree, no college 0.03 0.02 0.01 0.31 0.00 0.02 ‐0.01 Some college 0.03 0.16 0.02 0.26 ‐0.01 College degree 0.04 0.11 0.02 0.19 0.18 0.26 ‐0.09 ‐0.14 ‐0.22 Racial composition White 0.03 0.80 0.02 0.71 ‐0.05 Black 0.02 0.10 0.02 0.11 0.01 0.05 Hispanic 0.02 0.06 0.01 0.12 ‐0.06 0.05 Asian 0.03 0.03 0.02 0.05 Marital status 0.02 ‐0.02 ‐0.05 ‐0.16 Married 0.02 0.68 0.01 0.62 ‐0.02 ‐0.19 Separated/Divorced 0.02 0.20 0.02 0.21 0.00 ‐0.01 Single 0.03 0.12 0.02 0.16 Kids in household ‐0.03 0.04 0.01 ‐0.02 Kids 0.03 0.38 0.02 0.33 0.00 0.02 No Kids 0.02 0.62 0.02 0.67 0.00 ‐0.03 ‐0.02 ‐0.10 Live in dual‐earner household Dual earners 0.02 0.31 0.01 0.32 ‐0.01 0.06 No dual earners 0.03 0.69 0.02 0.68 ‐0.01 ‐0.16 Homeownership status Renter 0.05 0.28 Owner 0.01 0.72 Income quintile 0.04 0.26 0.01 0.74 ‐0.11 0.19 ‐0.05 ‐0.14 ‐0.05 0.34 0.00 0.00 1st 0.03 0.13 0.02 0.12 0.00 0.01 2nd 0.02 0.18 0.02 0.20 0.00 ‐0.04 ‐0.04 3rd 0.02 0.20 0.02 0.22 0.00 4th 0.02 0.23 0.01 0.23 ‐0.01 0.02 5th 0.02 0.25 0.02 0.24 0.01 0.06 0.29 0.12 Employment status Employed 0.02 0.60 0.02 0.63 0.29 0.13 Unemployed 0.05 0.04 0.04 0.04 0.00 ‐0.01 Military 0.17 0.00 0.12 0.00 0.00 0.03 Not in labor force 0.02 0.36 0.01 0.33 0.01 ‐0.04 0.10 0.07 Geography (Census divisions) New England 0.02 0.05 0.01 0.05 0.00 0.01 Middle Atlantic 0.01 0.16 0.01 0.14 0.03 0.10 East North Central 0.02 0.18 0.01 0.16 0.01 0.05 West North Central 0.03 0.07 0.02 0.07 0.00 0.00 ‐0.07 South Atlantic 0.03 0.17 0.02 0.19 0.02 East South Central 0.02 0.06 0.02 0.06 0.00 0.02 West South Central 0.03 0.10 0.02 0.11 0.00 ‐0.05 23 Mountain 0.05 0.05 0.03 0.07 0.05 Pacific 0.02 0.15 0.01 0.16 0.00 0.04 0.04 ‐2.24 ‐0.05 Metropolitan area status Lives in metro area 0.02 0.72 0.02 0.82 0.01 Doesn't live in metro area 0.02 0.25 0.01 0.17 0.01 Constant ‐0.03 0.02 ‐1.37 Total 0.03 Note: Oaxaca decompositions also include year fixed effects. The contribution of the interactions is not listed. 24 ‐0.84 Table 3: Relationship between average state long‐distance move rate (interstate + cross‐county) and select variables Fract. changed firms in last year (1) (2) (3) (4) (5) (6) (7) (8) 0.00 (0.03) 0.07 (0.04) 0.02 (0.03) 0.03 (0.03) (9) (10) 0.00 (0.02) 0.00 (0.02) 0.00 (0.01) ‐0.01 (0.01) (11) (12) 0.25 0.14 (0.03) (0.02) Fract. changed occupations in last year (1 digit) 0.36 0.20 (0.05) (0.04) Fract. employed last year but not currently emp. 0.14 0.01 (0.04) (0.03) Fract. of employed in medium‐skill jobs Fract. of employed in high‐skill jobs Log(p10)‐log(p50) Log(p50)‐log(p90) Fraction in households with dual earners 0.04 0.00 (0.03) (0.02) Contribution to change in fraction ‐0.008 ‐0.005 ‐0.009 ‐0.005 ‐0.004 0.000 0.005 0.000 0.000 0.001 0.000 0.000 moving (avg. 1981‐89 to 2002‐2010) State time trends NO YES NO YES NO YES NO YES NO YES NO YES Note: Coefficients are from state‐year level regressions of long‐distance annual move rates (across state or county) on the listed coefficients, state and year fixed effects (and state time trends where indicated), the fraction of the state unemployed, the log of average annual income for the state, and the fraction of the state that is young (under 21) and of prime working age (21‐64). Contribution to change in fraction moving is the coefficient listed in the table multiplied by the change in the average of the listed variable between 1981‐89 and 2002‐2010 (weighted by population size). Across states, the average fraction moving in 1981‐89 is 0.057 and the average fraction moving between 2002‐2010 is 0.039 (the change in the average fraction moving was ‐0.018). 25 Table 4: Oaxaca decomposition of inter‐state migration, including labor market transitions 1981‐1989 Age distribution Age 25‐34 Age 35‐44 Age 45‐64 Age 65+ Education No high school degree High school degree, no college Some college College degree Racial composition White Black Hispanic Asian Marital status Married Separated/Divorced Single Kids in household Kids No Kids Live in dual‐earner household Dual earners No dual earners Homeownership status Renter Owner Income quintile 1st 2nd 3rd 4th 5th Geography (Census divisions) New England Middle Atlantic East North Central West North Central South Atlantic East South Central West South Central Mountain Pacific Metropolitan area status Lives in metro area Doesn't live in metro area Employment transitions Avg. move rate Pop. share 0.04 0.03 0.01 0.01 0.01 0.03 0.03 0.04 0.03 0.02 0.02 0.03 0.02 0.02 0.03 0.03 0.02 0.02 0.03 0.05 0.01 0.03 0.02 0.02 0.02 0.02 0.02 0.01 0.02 0.03 0.03 0.02 0.03 0.05 0.02 0.02 0.02 0.28 0.22 0.31 0.19 0.26 0.02 0.16 0.11 0.80 0.10 0.06 0.03 0.68 0.20 0.12 0.38 0.62 0.31 0.69 0.28 0.72 0.13 0.18 0.20 0.23 0.25 0.05 0.16 0.18 0.07 0.17 0.06 0.10 0.05 0.15 0.72 0.25 Contribution of changes in: Quantities Coefficients 2002‐2010 Avg. move rate Pop. share 0.03 0.02 0.01 0.01 0.01 0.01 0.02 0.02 0.02 0.02 0.01 0.02 0.01 0.02 0.02 0.02 0.02 0.01 0.02 0.04 0.01 0.02 0.02 0.02 0.01 0.02 0.01 0.01 0.01 0.02 0.02 0.02 0.02 0.03 0.01 0.02 0.01 0.21 0.22 0.38 0.19 0.14 0.31 0.26 0.19 0.71 0.11 0.12 0.05 0.62 0.21 0.16 0.33 0.67 0.32 0.68 0.26 0.74 0.12 0.20 0.22 0.23 0.24 0.05 0.14 0.16 0.07 0.19 0.06 0.11 0.07 0.16 0.82 0.17 26 ‐0.15 ‐0.12 0.00 ‐0.03 0.00 0.14 0.18 ‐0.02 0.00 ‐0.02 ‐0.09 ‐0.05 0.00 ‐0.06 0.01 ‐0.06 ‐0.03 0.00 ‐0.03 0.02 0.01 0.01 ‐0.01 0.00 0.00 ‐0.14 ‐0.07 ‐0.07 ‐0.03 ‐0.01 0.00 ‐0.01 ‐0.01 ‐0.01 0.09 0.00 0.02 0.01 0.00 0.01 0.00 0.00 0.04 0.01 0.02 0.01 0.01 ‐0.25 ‐0.11 ‐0.08 ‐0.06 0.00 0.02 0.03 0.08 0.00 0.00 ‐0.05 ‐0.21 ‐0.27 0.03 0.05 ‐0.02 ‐0.19 ‐0.24 ‐0.01 0.06 ‐0.01 0.04 ‐0.05 ‐0.02 0.11 ‐0.13 0.25 ‐0.19 0.45 0.01 0.00 ‐0.02 0.00 0.02 0.00 0.08 0.00 0.09 0.06 ‐0.01 ‐0.07 0.02 ‐0.04 ‐0.03 0.07 ‐0.07 ‐0.11 0.03 1.25 Didn’t change job in last year Changed job in last year Emp. in last year, not emp. now Not emp. in last year, or emp. now Didn't change occ. in last year Changed occ. In last year Constant Total 0.02 0.09 0.05 0.02 0.02 0.10 0.59 0.08 0.08 0.92 0.59 0.03 0.01 0.06 0.04 0.01 0.01 0.08 0.61 0.07 0.06 0.92 0.63 0.02 ‐0.06 ‐0.06 ‐0.01 ‐0.01 ‐0.06 ‐0.06 ‐0.46 Note: Oaxaca decompositions also include year fixed effects. The contribution of the interactions is not listed. 27 0.89 ‐0.13 ‐0.01 0.20 0.31 ‐0.02 ‐1.86 ‐0.88 Table 5: Estimated Returns to a Month of Tenure from National Longitudinal Surveys i. Full samples, ages 25-28 Tenure coefficient Tenure-squared Observation years NLS-YW NLS-YM NLSY79 NLSY97 .0050 (.0008) -.00002 (8.12e-06) .0054 (.0007) -.00003 7.12e-06 .0086 (.0004) -.00005 (3.76e-6) .0079 (.0009) -.00006 (.00001) ‘70-‘73, ‘78 ‘70,’71,’73, 1982-1993 ‘75,’76 N 2169 5227 Mean tenure (months) 27.3 25.4 2005-2009 31770 7825 30.5 23.8 ii. Subsample of white males in the labor force, ages 25-28 NLS-YW NLS-YM* NLSY79 NLSY97 Tenure coefficient - Tenure-squared - .0049 (.0008) -.00002 (8.13e-06) .0090 (.0010) -.00005 (.00001) .0070 (.0019) -.00005 .00003 Observation years ‘70,’71,’73, 1982-1993 ‘75,’76 N 3768 Mean tenure (months) 25.4 2005-2009 2677 1468 30.3 23.7 Notes: Data are from National Longitudinal Surveys of Youth 1979 and 1997 (NLSY79 and NLSY97) and from the National Longitudinal Surveys of Young Men and Young Women (NLSYM and NLSYW). Dependent variable is log of real hourly wages on current/MR job as computed by the BLS and released with public use files for each survey. Observations within top and bottom 2.5% of wages each survey year are excluded. Tenure is measured in months; top 2.5% of tenure durations are excluded. Standard errors clustered on person identifier in parentheses. All Panel i specifications include controls for age, age-squared, black race, Hispanic ethnicity, sex, highest grade completed, and a full set of survey year dummies. Controls for sex, race, and ethnicity are excluded from Panel ii specifications. Panel ii sample limited to those in the labor force by CPS definition in the NLSY79 and those not enrolled in school in the NLSY97. *Exception is that NLSYM could not be limited using direct measures of labor force participation. 28 Table 6: Relationship between change in log wage from former to current job and select variables Changed industry (3 digit) Changed industry (3 digit) X (year is 2004 or 2006) (1) (2) (3) (4) (5) (6) (7) (8) (9) ‐0.055 ‐0.073 ‐0.064 ‐0.071 ‐0.052 ‐0.068 (0.031) (0.033) (0.037) (0.037) (0.023) (0.024) ‐0.018 0.027 0.000 0.048 ‐0.018 0.031 (0.043) (0.047) (0.055) (0.054) (0.033) (0.034) Changed occ. (3 digit) Changed occ. (3 digit) X (year is 2004 or 2006) 0.002 0.038 ‐0.007 0.018 0.007 0.037 (0.031) (0.033) (0.032) (0.032) (0.023) (0.023) ‐0.078 ‐0.091 ‐0.091 ‐0.107 ‐0.091 ‐0.105 (0.040) (0.044) (0.049) (0.048) (0.031) (0.032) Mean (changed variable), 1994 or 1996 0.664 0.613 0.721 0.655 0.688 0.630 Mean (changed variable), 2004 or 2006 0.625 0.629 0.686 0.672 0.651 0.647 N 1863 1537 3400 1862 1537 3399 Note: Microdata is from the Displaced Worker Survey. In addition to variables listed in the table, regressions also include labor market experience and experience squared, years of tenure in the former firm and years squared, years since displacement from previous job, year fixed effects, and dummy variables for gender, educational attainment, race, and marital status. Sample includes survey data from 1994, 1996, 1998, 2004, 2006, and 2008. Robust standard errors are in parentheses. 29 Figure 1 Fraction of Population that Move by Reason Across State Family related Housing related Job related Other reasons .02 .015 .01 .005 0 2000 2001 2002 2003 2004 2005 2006 Survey year 2007 2008 2009 2010 Within County Family related Housing related Job related Other reasons .07 .06 .05 .04 .03 .02 .01 0 2000 2001 2002 2003 2004 2005 2006 Survey year 30 2007 2008 2009 2010 Figure 2 Labor Market Transitions in the CPS Changed employers Changed occupation Exited employment .12 .1 .08 .06 .04 .02 0 1980 1985 1990 31 1995 Survey year 2000 2005 2010 OLS Regressions Underlying Oaxaca Decompositions Interstate - 1980s Transformed regress coefficients Number of obs = 387453 -----------------------------------------------------------------------------smigrant | Coef. Std. Err. t P>|t| [95% Conf. Interval] -------------+---------------------------------------------------------------agegrpdum5 | 1.755747 .0505601 34.73 0.000 1.65665 1.854843 agegrpdum6 | .3668085 .0523453 7.01 0.000 .2642133 .4694038 agegrpdum7 | -.5408929 .0429026 -12.61 0.000 -.6249807 -.4568051 agegrpdum8 | -1.581662 .0633515 -24.97 0.000 -1.705829 -1.457495 marstbdum1 | .470283 .0425925 11.04 0.000 .3868029 .553763 marstbdum2 | .1929498 .0456584 4.23 0.000 .1034607 .2824388 marstbdum3 | -.6632327 .0574437 -11.55 0.000 -.7758206 -.5506448 kids | -.222798 .0319897 -6.96 0.000 -.2854969 -.1600991 nokids | .222798 .0319897 6.96 0.000 .1600991 .2854969 race2dum1 | .7693903 .054179 14.20 0.000 .6632012 .8755795 race2dum2 | -.6433308 .0710623 -9.05 0.000 -.7826108 -.5040508 race2dum3 | -1.066861 .0816315 -13.07 0.000 -1.226857 -.9068662 race2dum4 | .9408019 .1149207 8.19 0.000 .7155607 1.166043 incdumdum1 | .1772545 .0662686 2.67 0.007 .0473701 .3071389 incdumdum2 | .2049154 .0528898 3.87 0.000 .1012529 .3085778 incdumdum3 | .1428145 .0491738 2.90 0.004 .0464354 .2391936 incdumdum4 | -.3431243 .0506012 -6.78 0.000 -.4423012 -.2439474 incdumdum5 | -.1818602 .0546818 -3.33 0.001 -.2890349 -.0746855 empstatdum1 | -3.490791 .1086506 -32.13 0.000 -3.703743 -3.277839 empstatdum2 | -1.739714 .1376879 -12.64 0.000 -2.009579 -1.46985 empstatdum3 | 8.343179 .2980873 27.99 0.000 7.758937 8.927421 empstatdum4 | -3.112674 .1155854 -26.93 0.000 -3.339218 -2.88613 nohswork | .4699019 .035177 13.36 0.000 .400956 .5388477 hswork | -.4699019 .035177 -13.36 0.000 -.5388477 -.400956 educdum1 | -.9295633 .0503899 -18.45 0.000 -1.028326 -.8308007 educdum2 | -.0028389 .0914836 -0.03 0.975 -.182144 .1764662 educdum3 | -.0304997 .0481844 -0.63 0.527 -.1249396 .0639402 educdum4 | .9629019 .0545087 17.67 0.000 .8560666 1.069737 renter | 1.675605 .029183 57.42 0.000 1.618407 1.732802 owner | -1.675605 .029183 -57.42 0.000 -1.732802 -1.618407 metro2 | .1037793 .0300036 3.46 0.001 .0449732 .1625854 nonmetro | -.1037793 .0300036 -3.46 0.001 -.1625854 -.0449732 regiondum1 | -.5229967 .1018536 -5.13 0.000 -.7226268 -.3233666 regiondum2 | -1.369008 .0611546 -22.39 0.000 -1.488869 -1.249147 regiondum3 | -.7440205 .0591694 -12.57 0.000 -.8599907 -.6280504 regiondum4 | .0874385 .0891545 0.98 0.327 -.0873017 .2621787 regiondum5 | .9015262 .0590242 15.27 0.000 .7858406 1.017212 regiondum6 | -.0054698 .0890075 -0.06 0.951 -.1799219 .1689823 regiondum7 | .4598243 .0691708 6.65 0.000 .3242516 .5953969 regiondum8 | 2.00556 .112141 17.88 0.000 1.785767 2.225353 regiondum9 | -.8128539 .0642926 -12.64 0.000 -.9388655 -.6868424 y1 | -.0308425 .0668454 -0.46 0.645 -.1618575 .1001726 y2 | -.0240111 .0664989 -0.36 0.718 -.154347 .1063249 y3 | -.3132778 .0659824 -4.75 0.000 -.4426012 -.1839543 y4 | -.0971625 .0657153 -1.48 0.139 -.2259624 .0316375 y5 | .0296164 .0630176 0.47 0.638 -.0938962 .1531291 y6 | .1101981 .0627312 1.76 0.079 -.0127532 .2331495 y7 | .1299948 .0624373 2.08 0.037 .0076195 .2523701 y8 | .1954844 .061965 3.15 0.002 .074035 .3169339 _cons | 5.670906 .1232828 46.00 0.000 5.429275 5.912536 ------------------------------------------------------------------------------ 32 Interstate - 2000s Transformed regress coefficients Number of obs = 799356 -----------------------------------------------------------------------------smigrant | Coef. Std. Err. t P>|t| [95% Conf. Interval] -------------+---------------------------------------------------------------agegrpdum5 | 1.242454 .0297727 41.73 0.000 1.1841 1.300807 agegrpdum6 | .1607371 .0276017 5.82 0.000 .1066386 .2148355 agegrpdum7 | -.4221945 .0224343 -18.82 0.000 -.466165 -.378224 agegrpdum8 | -.9809962 .0359399 -27.30 0.000 -1.051437 -.9105551 marstbdum1 | .1764719 .0230516 7.66 0.000 .1312915 .2216523 marstbdum2 | .1448219 .0246811 5.87 0.000 .0964477 .1931961 marstbdum3 | -.3212938 .0288913 -11.12 0.000 -.3779198 -.2646677 kids | -.1692549 .017349 -9.76 0.000 -.2032583 -.1352515 nokids | .1692549 .017349 9.76 0.000 .1352515 .2032583 race2dum1 | .4918372 .0260735 18.86 0.000 .4407341 .5429404 race2dum2 | -.2588594 .037257 -6.95 0.000 -.331882 -.1858369 race2dum3 | -.4037409 .0360407 -11.20 0.000 -.4743796 -.3331023 race2dum4 | .1707632 .0491714 3.47 0.001 .0743887 .2671376 incdumdum1 | .2199234 .0385134 5.71 0.000 .1444383 .2954084 incdumdum2 | .0276918 .0288085 0.96 0.336 -.0287719 .0841555 incdumdum3 | -.0519638 .0265557 -1.96 0.050 -.104012 .0000844 incdumdum4 | -.2556331 .0276719 -9.24 0.000 -.3098691 -.2013971 incdumdum5 | .0599817 .031214 1.92 0.055 -.0011968 .1211602 empstatdum1 | -2.831854 .0675675 -41.91 0.000 -2.964284 -2.699424 empstatdum2 | -1.252151 .0813944 -15.38 0.000 -1.411681 -1.092621 empstatdum3 | 6.55183 .1896125 34.55 0.000 6.180195 6.923464 empstatdum4 | -2.467824 .0712202 -34.65 0.000 -2.607414 -2.328235 nohswork | .2531883 .0196165 12.91 0.000 .2147406 .291636 hswork | -.2531883 .0196165 -12.91 0.000 -.291636 -.2147406 educdum1 | -.641359 .0309332 -20.73 0.000 -.7019871 -.580731 educdum2 | -.2134906 .0218872 -9.75 0.000 -.2563888 -.1705925 educdum3 | .0857768 .0233131 3.68 0.000 .0400838 .1314698 educdum4 | .7690729 .0274358 28.03 0.000 .7152996 .8228461 renter | 1.196785 .017091 70.02 0.000 1.163287 1.230283 owner | -1.196785 .017091 -70.02 0.000 -1.230283 -1.163287 metro2 | .0310198 .0184212 1.68 0.092 -.0050852 .0671248 nonmetro | -.0310198 .0184212 -1.68 0.092 -.0671248 .0050852 regiondum1 | -.402386 .0580027 -6.94 0.000 -.5160695 -.2887026 regiondum2 | -.7470632 .0359654 -20.77 0.000 -.8175542 -.6765722 regiondum3 | -.4398173 .0336787 -13.06 0.000 -.5058263 -.3738082 regiondum4 | .1068554 .0489681 2.18 0.029 .0108795 .2028313 regiondum5 | .4801561 .0313555 15.31 0.000 .4187004 .5416118 regiondum6 | .2863644 .0513639 5.58 0.000 .1856929 .3870359 regiondum7 | .0260973 .0393195 0.66 0.507 -.0509676 .1031623 regiondum8 | 1.236444 .0497672 24.84 0.000 1.138902 1.333986 regiondum9 | -.5466505 .0350548 -15.59 0.000 -.6153567 -.4779442 y1 | .3601869 .036376 9.90 0.000 .288891 .4314827 y2 | .2466016 .0361794 6.82 0.000 .1756911 .317512 y3 | .1135642 .0360889 3.15 0.002 .0428312 .1842972 y4 | .2881626 .0361277 7.98 0.000 .2173536 .3589716 y5 | -.1231126 .0356125 -3.46 0.001 -.1929119 -.0533132 y6 | -.2019293 .0352699 -5.73 0.000 -.2710571 -.1328014 y7 | -.2459998 .0352285 -6.98 0.000 -.3150465 -.1769531 y8 | -.4374735 .0354147 -12.35 0.000 -.5068852 -.3680618 _cons | 4.303516 .0718184 59.92 0.000 4.162754 4.444278 ------------------------------------------------------------------------------ 33 Intracounty – 1980s Transformed regress coefficients Number of obs = 387453 -----------------------------------------------------------------------------hmigrant2 | Coef. Std. Err. t P>|t| [95% Conf. Interval] -------------+---------------------------------------------------------------agegrpdum5 | 7.282278 .0917663 79.36 0.000 7.102419 7.462137 agegrpdum6 | 1.351045 .0950064 14.22 0.000 1.164835 1.537255 agegrpdum7 | -2.749867 .0778679 -35.31 0.000 -2.902485 -2.597248 agegrpdum8 | -5.883456 .1149825 -51.17 0.000 -6.108819 -5.658094 marstbdum1 | -.8108427 .0773051 -10.49 0.000 -.9623585 -.659327 marstbdum2 | 2.124562 .0828696 25.64 0.000 1.96214 2.286984 marstbdum3 | -1.313719 .1042599 -12.60 0.000 -1.518065 -1.109373 kids | -.6407727 .0580612 -11.04 0.000 -.7545709 -.5269745 nokids | .6407727 .0580612 11.04 0.000 .5269745 .7545709 race2dum1 | -.0272443 .0983344 -0.28 0.782 -.2199768 .1654883 race2dum2 | -.8891558 .1289777 -6.89 0.000 -1.141948 -.6363635 race2dum3 | .6666382 .1481606 4.50 0.000 .3762479 .9570285 race2dum4 | .2497619 .2085803 1.20 0.231 -.1590494 .6585731 incdumdum1 | -.7403306 .120277 -6.16 0.000 -.97607 -.5045912 incdumdum2 | .0228638 .0959947 0.24 0.812 -.1652828 .2110105 incdumdum3 | .4914532 .0892501 5.51 0.000 .3165258 .6663806 incdumdum4 | .505728 .0918409 5.51 0.000 .3257225 .6857334 incdumdum5 | -.2797144 .0992471 -2.82 0.005 -.4742358 -.085193 empstatdum1 | .8307889 .1972001 4.21 0.000 .4442826 1.217295 empstatdum2 | 3.053206 .2499026 12.22 0.000 2.563404 3.543007 empstatdum3 | -3.647731 .5410264 -6.74 0.000 -4.708127 -2.587335 empstatdum4 | -.2362636 .2097868 -1.13 0.260 -.6474394 .1749121 nohswork | .3180321 .063846 4.98 0.000 .1928958 .4431684 hswork | -.3180321 .063846 -4.98 0.000 -.4431684 -.1928958 educdum1 | .8405141 .0914573 9.19 0.000 .6612605 1.019768 educdum2 | -.3242109 .1660421 -1.95 0.051 -.6496486 .0012267 educdum3 | -.1782543 .0874543 -2.04 0.042 -.3496621 -.0068465 educdum4 | -.3380488 .0989329 -3.42 0.001 -.5319543 -.1441433 renter | 5.858695 .0529669 110.61 0.000 5.754882 5.962509 owner | -5.858695 .0529669 -110.61 0.000 -5.962509 -5.754882 metro2 | .3522971 .0544562 6.47 0.000 .2455645 .4590297 nonmetro | -.3522971 .0544562 -6.47 0.000 -.4590297 -.2455645 regiondum1 | -2.211334 .1848637 -11.96 0.000 -2.573662 -1.849007 regiondum2 | -3.429468 .1109951 -30.90 0.000 -3.647015 -3.211921 regiondum3 | -.1911698 .107392 -1.78 0.075 -.4016549 .0193153 regiondum4 | .0656498 .1618149 0.41 0.685 -.2515025 .3828021 regiondum5 | -.0665187 .1071285 -0.62 0.535 -.2764872 .1434499 regiondum6 | .2262406 .1615481 1.40 0.161 -.0903888 .5428701 regiondum7 | 2.163469 .1255445 17.23 0.000 1.917406 2.409533 regiondum8 | 2.422342 .2035351 11.90 0.000 2.023419 2.821264 regiondum9 | 1.02079 .1166906 8.75 0.000 .7920794 1.2495 y1 | -.4223826 .121324 -3.48 0.000 -.660174 -.1845912 y2 | -.0026889 .1206951 -0.02 0.982 -.2392478 .2338699 y3 | -.5571842 .1197575 -4.65 0.000 -.7919054 -.322463 y4 | -.4859197 .1192728 -4.07 0.000 -.7196908 -.2521486 y5 | .2630349 .1143766 2.30 0.021 .0388602 .4872096 y6 | .6828243 .1138567 6.00 0.000 .4596685 .9059801 y7 | .3709518 .1133234 3.27 0.001 .1488414 .5930622 y8 | .1513645 .112466 1.35 0.178 -.0690655 .3717945 _cons | 10.42918 .2237574 46.61 0.000 9.990625 10.86774 ------------------------------------------------------------------------------ 34 Intracounty – 2000s Transformed regress coefficients Number of obs = 799356 -----------------------------------------------------------------------------hmigrant2 | Coef. Std. Err. t P>|t| [95% Conf. Interval] -------------+---------------------------------------------------------------agegrpdum5 | 5.829921 .0619008 94.18 0.000 5.708597 5.951244 agegrpdum6 | .7893038 .0573872 13.75 0.000 .6768268 .9017807 agegrpdum7 | -2.246318 .0466435 -48.16 0.000 -2.337738 -2.154898 agegrpdum8 | -4.372906 .0747233 -58.52 0.000 -4.519362 -4.226451 marstbdum1 | -.8795736 .047927 -18.35 0.000 -.9735089 -.7856384 marstbdum2 | 1.552667 .0513149 30.26 0.000 1.452091 1.653242 marstbdum3 | -.6730929 .0600684 -11.21 0.000 -.7908249 -.5553608 kids | -.0395242 .0360705 -1.10 0.273 -.1102213 .0311728 nokids | .0395242 .0360705 1.10 0.273 -.0311728 .1102213 race2dum1 | .1781399 .0542098 3.29 0.001 .0718906 .2843893 race2dum2 | .5575155 .0774617 7.20 0.000 .4056931 .7093379 race2dum3 | -.6388079 .0749329 -8.53 0.000 -.7856738 -.4919419 race2dum4 | -.0968476 .1022332 -0.95 0.343 -.2972212 .103526 incdumdum1 | .1091192 .0800739 1.36 0.173 -.047823 .2660613 incdumdum2 | .2898768 .0598962 4.84 0.000 .1724823 .4072714 incdumdum3 | .0865063 .0552123 1.57 0.117 -.0217079 .1947206 incdumdum4 | -.1471901 .0575331 -2.56 0.011 -.2599531 -.0344272 incdumdum5 | -.3383122 .0648976 -5.21 0.000 -.4655093 -.211115 empstatdum1 | .503827 .1404807 3.59 0.000 .2284895 .7791645 empstatdum2 | 1.911561 .1692285 11.30 0.000 1.579879 2.243243 empstatdum3 | -1.487454 .3942265 -3.77 0.000 -2.260125 -.7147835 empstatdum4 | -.9279335 .1480752 -6.27 0.000 -1.218156 -.6377111 nohswork | .6095049 .040785 14.94 0.000 .5295678 .6894421 hswork | -.6095049 .040785 -14.94 0.000 -.6894421 -.5295678 educdum1 | .3144924 .0643137 4.89 0.000 .1884397 .4405452 educdum2 | .0977714 .045506 2.15 0.032 .0085812 .1869616 educdum3 | -.2259148 .0484707 -4.66 0.000 -.3209158 -.1309137 educdum4 | -.1863491 .0570422 -3.27 0.001 -.29815 -.0745482 renter | 5.795038 .0355342 163.08 0.000 5.725393 5.864684 owner | -5.795038 .0355342 -163.08 0.000 -5.864684 -5.725393 metro2 | .4265644 .0382999 11.14 0.000 .3514979 .5016308 nonmetro | -.4265644 .0382999 -11.14 0.000 -.5016308 -.3514979 regiondum1 | -1.416465 .1205944 -11.75 0.000 -1.652826 -1.180104 regiondum2 | -2.644218 .0747762 -35.36 0.000 -2.790777 -2.497659 regiondum3 | -.0064942 .0700218 -0.09 0.926 -.1437347 .1307463 regiondum4 | -.280705 .1018104 -2.76 0.006 -.4802501 -.0811599 regiondum5 | .0664281 .0651917 1.02 0.308 -.0613455 .1942017 regiondum6 | .6192335 .1067915 5.80 0.000 .4099258 .8285413 regiondum7 | 1.231535 .0817498 15.06 0.000 1.071308 1.391762 regiondum8 | 2.385455 .1034718 23.05 0.000 2.182654 2.588256 regiondum9 | .0452313 .072883 0.62 0.535 -.0976171 .1880796 y1 | .4806529 .07563 6.36 0.000 .3324206 .6288853 y2 | .1926532 .0752212 2.56 0.010 .0452221 .3400842 y3 | .1256103 .075033 1.67 0.094 -.0214519 .2726724 y4 | .047253 .0751136 0.63 0.529 -.0999672 .1944732 y5 | .1318353 .0740426 1.78 0.075 -.0132856 .2769563 y6 | -.5966207 .0733302 -8.14 0.000 -.7403455 -.452896 y7 | -.3457847 .0732441 -4.72 0.000 -.4893408 -.2022286 y8 | -.0355992 .0736313 -0.48 0.629 -.1799143 .1087158 _cons | 10.15613 .1493188 68.02 0.000 9.863473 10.44879 ------------------------------------------------------------------------------ 35 Interstate with labor market transitions – 1980s Transformed regress coefficients Number of obs = 224434 -----------------------------------------------------------------------------smigrant | Coef. Std. Err. t P>|t| [95% Conf. Interval] -------------+---------------------------------------------------------------agegrpdum5 | 1.079132 .0702742 15.36 0.000 .9413968 1.216868 agegrpdum6 | .3552695 .0715946 4.96 0.000 .2149459 .4955931 agegrpdum7 | -.3006167 .0662093 -4.54 0.000 -.4303852 -.1708482 agegrpdum8 | -1.133785 .1326043 -8.55 0.000 -1.393686 -.8738842 marstbdum1 | .6824023 .0647923 10.53 0.000 .5554109 .8093936 marstbdum2 | .0175789 .0674601 0.26 0.794 -.1146411 .1497989 marstbdum3 | -.6999812 .0748051 -9.36 0.000 -.8465973 -.553365 kids | -.2982149 .0398895 -7.48 0.000 -.3763972 -.2200326 nokids | .2982149 .0398895 7.48 0.000 .2200326 .3763972 renter | 1.790816 .0400065 44.76 0.000 1.712405 1.869228 owner | -1.790816 .0400065 -44.76 0.000 -1.869228 -1.712405 race2dum1 | .7253665 .0727679 9.97 0.000 .5827432 .8679898 race2dum2 | -.5209568 .0981123 -5.31 0.000 -.7132544 -.3286592 race2dum3 | -.9554947 .1105744 -8.64 0.000 -1.172218 -.7387718 race2dum4 | .7510851 .1527178 4.92 0.000 .4517621 1.050408 incdumdum1 | .484911 .1385471 3.50 0.000 .2133623 .7564597 incdumdum2 | .1267308 .09387 1.35 0.177 -.0572521 .3107137 incdumdum3 | -.2968385 .0739664 -4.01 0.000 -.4418108 -.1518662 incdumdum4 | -.3952872 .0664824 -5.95 0.000 -.5255911 -.2649834 incdumdum5 | .0804839 .0686893 1.17 0.241 -.0541455 .2151133 nohswork | .5163611 .0430181 12.00 0.000 .4320467 .6006755 hswork | -.5163611 .0430181 -12.00 0.000 -.6006755 -.4320467 educdum1 | -.8349753 .0681321 -12.26 0.000 -.9685125 -.7014381 educdum2 | -.0722525 .1123582 -0.64 0.520 -.2924717 .1479666 educdum3 | -.0080201 .0598212 -0.13 0.893 -.1252682 .109228 educdum4 | .9152479 .066438 13.78 0.000 .7850311 1.045465 metro2 | .1923696 .0424002 4.54 0.000 .1092662 .2754729 nonmetro | -.1923696 .0424002 -4.54 0.000 -.2754729 -.1092662 regiondum1 | -.2820066 .1352962 -2.08 0.037 -.5471836 -.0168295 regiondum2 | -1.197896 .0854656 -14.02 0.000 -1.365406 -1.030386 regiondum3 | -.8044721 .081019 -9.93 0.000 -.9632674 -.6456768 regiondum4 | .2616558 .1201303 2.18 0.029 .0262034 .4971082 regiondum5 | .8634863 .0810615 10.65 0.000 .7046079 1.022365 regiondum6 | .0607074 .1267814 0.48 0.632 -.1877809 .3091957 regiondum7 | .30158 .093941 3.21 0.001 .117458 .4857021 regiondum8 | 1.801642 .1479179 12.18 0.000 1.511727 2.091558 regiondum9 | -1.004697 .0853075 -11.78 0.000 -1.171898 -.8374968 y1 | -.0404956 .0923363 -0.44 0.661 -.2214725 .1404812 y2 | -.0859648 .091838 -0.94 0.349 -.265965 .0940353 y3 | -.2640156 .0914203 -2.89 0.004 -.4431971 -.0848341 y4 | -.0261901 .0908457 -0.29 0.773 -.2042453 .1518651 y5 | .0005024 .0860202 0.01 0.995 -.168095 .1690998 y6 | .1625761 .0852994 1.91 0.057 -.0046085 .3297606 y7 | .1411897 .0843532 1.67 0.094 -.0241404 .3065199 y8 | .112398 .0835233 1.35 0.178 -.0513056 .2761016 nodjob | -2.441847 .0533906 -45.74 0.000 -2.546492 -2.337203 djob | 2.441847 .0533906 45.74 0.000 2.337203 2.546492 w2nw | .904806 .0711505 12.72 0.000 .7653529 1.044259 now2nw | -.904806 .0711505 -12.72 0.000 -1.044259 -.7653529 nodocc1 | -2.619246 .0760064 -34.46 0.000 -2.768217 -2.470275 docc1 | 2.619246 .0760064 34.46 0.000 2.470275 2.768217 _cons | 7.289872 .1368835 53.26 0.000 7.021584 7.55816 ------------------------------------------------------------------------------ 36 Interstate with labor market transitions – 2000s Transformed regress coefficients Number of obs = 525305 -----------------------------------------------------------------------------smigrant | Coef. Std. Err. t P>|t| [95% Conf. Interval] -------------+---------------------------------------------------------------agegrpdum5 | .8709772 .0360719 24.15 0.000 .8002774 .9416771 agegrpdum6 | .13945 .0336144 4.15 0.000 .0735667 .2053332 agegrpdum7 | -.285133 .0301932 -9.44 0.000 -.3443108 -.2259552 agegrpdum8 | -.7252942 .0630835 -11.50 0.000 -.8489359 -.6016525 marstbdum1 | .3325196 .0311062 10.69 0.000 .2715524 .3934867 marstbdum2 | -.0314052 .0318472 -0.99 0.324 -.0938248 .0310143 marstbdum3 | -.3011144 .033428 -9.01 0.000 -.3666321 -.2355966 kids | -.2114655 .0189408 -11.16 0.000 -.2485889 -.1743421 nokids | .2114655 .0189408 11.16 0.000 .1743421 .2485889 renter | 1.151324 .0205312 56.08 0.000 1.111083 1.191564 owner | -1.151324 .0205312 -56.08 0.000 -1.191564 -1.111083 race2dum1 | .3824756 .0308927 12.38 0.000 .3219269 .4430243 race2dum2 | -.2571665 .0449067 -5.73 0.000 -.3451822 -.1691507 race2dum3 | -.2741435 .0426768 -6.42 0.000 -.3577887 -.1904982 race2dum4 | .1488343 .0581522 2.56 0.010 .0348579 .2628107 incdumdum1 | .5595409 .084109 6.65 0.000 .3946898 .724392 incdumdum2 | -.0332035 .0442303 -0.75 0.453 -.1198935 .0534865 incdumdum3 | -.2787823 .0356554 -7.82 0.000 -.3486657 -.208899 incdumdum4 | -.3189805 .0338745 -9.42 0.000 -.3853735 -.2525874 incdumdum5 | .0714254 .0366602 1.95 0.051 -.0004275 .1432784 nohswork | .2856801 .0221618 12.89 0.000 .2422437 .3291166 hswork | -.2856801 .0221618 -12.89 0.000 -.3291166 -.2422437 educdum1 | -.5757076 .0435238 -13.23 0.000 -.6610129 -.4904022 educdum2 | -.167988 .0272609 -6.16 0.000 -.2214185 -.1145575 educdum3 | .0012867 .0277391 0.05 0.963 -.0530811 .0556546 educdum4 | .7424088 .0316864 23.43 0.000 .6803044 .8045132 metro2 | .0545053 .0224104 2.43 0.015 .0105815 .0984291 nonmetro | -.0545053 .0224104 -2.43 0.015 -.0984291 -.0105815 regiondum1 | -.3153183 .0684146 -4.61 0.000 -.4494087 -.1812279 regiondum2 | -.6209498 .04325 -14.36 0.000 -.7057184 -.5361811 regiondum3 | -.4538762 .039832 -11.39 0.000 -.5319457 -.3758068 regiondum4 | .0389805 .0562697 0.69 0.488 -.0713063 .1492673 regiondum5 | .4751482 .0376856 12.61 0.000 .4012855 .5490108 regiondum6 | .4533946 .0627831 7.22 0.000 .3303418 .5764474 regiondum7 | -.0510392 .0467344 -1.09 0.275 -.1426371 .0405587 regiondum8 | 1.050938 .0583573 18.01 0.000 .9365596 1.165317 regiondum9 | -.5772778 .0417831 -13.82 0.000 -.6591714 -.4953842 y1 | .2488027 .0432504 5.75 0.000 .1640334 .3335721 y2 | .2162857 .0428988 5.04 0.000 .1322054 .300366 y3 | .0527586 .0430047 1.23 0.220 -.0315293 .1370465 y4 | .2306884 .0430926 5.35 0.000 .1462282 .3151486 y5 | -.0516676 .0422988 -1.22 0.222 -.134572 .0312368 y6 | -.1830599 .0419055 -4.37 0.000 -.2651935 -.1009264 y7 | -.1733759 .0420275 -4.13 0.000 -.2557485 -.0910033 y8 | -.340432 .0426121 -7.99 0.000 -.4239503 -.2569137 nodjob | -1.420702 .0279076 -50.91 0.000 -1.4754 -1.366004 djob | 1.420702 .0279076 50.91 0.000 1.366004 1.4754 w2nw | .6884952 .0372634 18.48 0.000 .6154601 .7615303 now2nw | -.6884952 .0372634 -18.48 0.000 -.7615303 -.6154601 nodocc1 | -2.288697 .0458368 -49.93 0.000 -2.378536 -2.198859 docc1 | 2.288697 .0458368 49.93 0.000 2.198859 2.378536 _cons | 5.425768 .0694396 78.14 0.000 5.289668 5.561867 ------------------------------------------------------------------------------ 37
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