U.S. North-South labor migration and trade

Area of Science:

• Economics
• Regional Science
• Labor Economics

Background:

• Labor migration and commodity trade are key factors in regional economic adjustments.
• Understanding inter-regional wage equalization is crucial for economic policy.

Purpose of the Study:

• To examine the roles of labor migration and commodity trade in U.S. real wage equalization.
• To analyze North-South economic patterns between 1960 and 1970.

Main Methods:

• Theoretical modeling of labor migration and trade.
• Empirical testing using 1960 and 1970 census data.
• Analysis of multi-regional input-output data for 1963.

Main Results:

• Trade-embodied labor flow patterns closely matched direct labor migration patterns.
• The South's workforce composition (age, education, race) remained relatively stable from 1960-1970.
• Commodity trade appears to be the primary driver of real wage equalization.

Conclusions:

• Interregional commodity trade plays a substantial role in real wage equalization.
• Labor migration patterns are reflected in trade flows.
• Regional economic disparities may persist despite migration due to trade dynamics.