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Interregional migration and interindustry labour mobility in Canada: a simultaneous approach.
The Canadian Journal of Economics. Revue Canadienne D'Economique
|February 1, 1994
Summary
Labor mobility between industries and migration between regions are linked. Job availability drives industry changes, while wages slightly influence regional moves, highlighting labor market constraints.
Area of Science:
- Labor Economics
- Regional Economics
- Sociology
Background:
- Understanding labor market dynamics is crucial for economic adaptability.
- Simultaneous determination of labor mobility and migration requires integrated analysis.
Purpose of the Study:
- To investigate the simultaneous determination of interindustry labor mobility and interregional migration.
- To identify key determinants of both labor mobility and migration patterns in Canada.
Main Methods:
- Estimation of a bivariate probit model using Canadian data.
- Analysis of the interplay between industry and regional labor market adjustments.
Main Results:
- Interindustry labor mobility is primarily driven by the availability of employment hours.
- Wage differentials are a statistically significant, yet minor, factor in interregional migration.
- Interindustry mobility significantly outweighs interregional migration in magnitude.
Conclusions:
- Labor market quantity constraints are critical for the economy's adaptive capacity.
- Policy interventions should consider the dominance of job availability in labor mobility decisions.