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Author Clark, David E. ♦ Herrin, William E. ♦ White, Nancy E.
Source CiteSeerX
Content type Text
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Subject Domain (in DDC) Computer science, information & general works ♦ Data processing & computer science
Subject Keyword Incomplete Compensation ♦ Migration Behavior ♦ Fixed Effect ♦ Binary Logit Model ♦ Intercity Wage Regression ♦ Amenity Market Disequilibrium ♦ Site Characteris-tics ♦ Location Net ♦ Spatial Equilibrium Model Focus ♦ In-complete Compensation ♦ Significant Factor ♦ Spatial Equilib-rium ♦ Derived Measure ♦ Amenity Market ♦ Site-specific Amenity ♦ Site Characteristic ♦ Comprehensive Vector ♦ Site Attribute ♦ Recent Refinement ♦ Empirical Approach ♦ Compensating Differential ♦ Subsequent Migration ♦ Spatial Equilibrium Model ♦ Migration Decision
Abstract Abstract. Spatial equilibrium models rely on migration to arbitrage away differences in utility across locations net of moving costs, where remaining differences in wages and rents reflect the compensating differentials related to site-specific amenities. Recent refinements to the spatial equilibrium model focus upon the prospect of disequilibrium in amenity markets. Amenity market disequilibrium implies over- or under-compensation (incomplete compensation) across some locations, which suggests a role for these factors in subsequent migration. This paper fol-lows the theoretical and empirical approach of Clark, Herrin, Knapp, and White (2003). An intercity wage regression is estimated where fixed effects capture the impact of site characteris-tics on wages. We then regress the fixed effects on a comprehensive vector of site attributes, where the residuals capture incomplete compensation in wages. The derived measures of in-complete compensation are included in a binary logit model of migration. The results provide further evidence that incomplete compensation for site characteristics is a significant factor in migration decisions, and the findings are consistent with tendencies toward spatial equilib-rium.
Educational Role Student ♦ Teacher
Age Range above 22 year
Educational Use Research
Education Level UG and PG ♦ Career/Technical Study
Learning Resource Type Article