The interaction of migration, income, and employment in Sweden

A common approach in migration studies is to explain interregional migration by single-equation models. Such models are likely to suffer from simultaneous-equation bias when used in studies attempting to analyze migration over a long period of time. In this study, a simultaneous-equation appraoch is applied, which takes account of the interdependence between migration and income and employment changes. The four-equation model is estimated for 70 labor market areas in Sweden.