A Multi-Disciplinary Interpretation of Migration: Amenity Capitalization in Both Land and Labor Markets

10 Pages Posted: 3 Aug 2011

See all articles by Philip E. Graves

Philip E. Graves

University of Colorado at Boulder - Department of Economics

Robert L. Sexton

Pepperdine University - Economics Department

Thomas Andrew Knapp

Pennsylvania State University

Date Written: July 1, 1984

Abstract

Various disciplines have produced models to explain and predict migration. A model is presented providing a taxonomy through which interdisciplinary insights can be synthesized. The imperfect information view emphasizes the role of wage differentials as representing arbitragible real utility differences. The perfect information approach holds that wage and rent differentials are compensating differentials, eliminating real utility variation over space. Moreover, markets compress diverse aspects of spatial variation in welfare, otherwise difficult to quantify, into compensating wage and rent differentials. Rents tend to capitalize the variation in a host of amenities, thereby substantially reducing the need for a potential migrant to discover and weight the importance of various amenities. Empirical results are presented that support the latter equilibrium. Amenities, as proxied by rents, are superior goods as indicated by net movements toward high rent locations. This suggests the increasing relative importance of amenities as a determinant of migration.

Keywords: migration, amenities, rent compensation, wage compensation, regional growth, regional decline

JEL Classification: R10, R11, R12, R13, R23, J31, J60

Suggested Citation

Graves, Philip E. and Sexton, Robert L. and Knapp, Thomas Andrew, A Multi-Disciplinary Interpretation of Migration: Amenity Capitalization in Both Land and Labor Markets (July 1, 1984). Annals of Regional Science, Vol. 18, No. 2, 1984. Available at SSRN: https://ssrn.com/abstract=1904578

Philip E. Graves (Contact Author)

University of Colorado at Boulder - Department of Economics ( email )

Campus Box 256
Boulder, CO 80309-0256
United States

Robert L. Sexton

Pepperdine University - Economics Department ( email )

24255 Pacific Coast Highway
Malibu, CA 90263
United States

Thomas Andrew Knapp

Pennsylvania State University ( email )

University Park
State College, PA 16802
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
29
Abstract Views
282
PlumX Metrics