Did Migration in the 1980s Narrow the North-South Divide?

Abstract

This paper integrates empirical analysis of the decision to migrate from a region with that of destination choice. Thus we are able to study how net migration, and not just gross outflows, are influenced by regional labour market circumstances. The results suggest that relative regional wages rates, but not relative unemployment and vacancy rates, are effective in reallocating labour from regions experiencing adverse demand shocks. We find little evidence that manual labour is migrating from those regions with relatively high manual unemployment, but that migration plays a more conventional role in the regional adjustment process for non-manual workers.