Migration as a Way to Diversify: Evidence from Rural to Urban Migration in the U.S

22 Pages Posted: 30 Mar 2017

See all articles by Mohammad Arzaghi

Mohammad Arzaghi

American University of Sharjah

Anil Rupasingha

Federal Reserve Banks - Federal Reserve Bank of Atlanta

Date Written: October 2013

Abstract

This paper extends the utility maximization model of migration by introducing income and unemployment‐related uncertainties as determinants of utility, and analyzes the effects of the informational advantages of migrants. The paper maintains that migration would expand an individual's economic choices and opportunities and allow diversification. Consequently, diversification advantages influence the location decisions of migrants, an effect captured by the correlation of incomes at the origin and potential destinations. We use the discrete choice model based on random utility maximization as the framework for our empirical investigation of migration from the United States rural to urban counties. This paper takes advantage of an equivalent relation between the conditional logit model and Poisson regression to study the migration decisions using aggregate data among a large set of spatial alternatives. The results show that the diversification concerns have significant effects on location decisions of the rural‐urban migrants in the United States.

Suggested Citation

Arzaghi, Mohammad and Rupasingha, Anil, Migration as a Way to Diversify: Evidence from Rural to Urban Migration in the U.S (October 2013). Journal of Regional Science, Vol. 53, Issue 4, pp. 690-711, 2013. Available at SSRN: https://ssrn.com/abstract=2943124 or http://dx.doi.org/10.1111/jors.12055

Mohammad Arzaghi (Contact Author)

American University of Sharjah ( email )

P.O. Box 26666
Sharjah, 26666
United Arab Emirates

HOME PAGE: http://www2.aus.edu/facultybios/profile.php?faculty=marzaghi

Anil Rupasingha

Federal Reserve Banks - Federal Reserve Bank of Atlanta

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