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Migration as a Way to Diversify: Evidence from Rural to Urban Migration in the US

نشرت على: أغسطس 2008​
المجال: Urban Planning​ الفئة: ورقة بيضاء / ورقة بحث/ تقرير بحثي​
The utility maximization theory of migration is well established as the prevailing approach in migration studies. This paper extends the model by introducing uncertainty in the determinants of utility, specifically income and unemployment; and analyzes the effects of the informational advantages of migrants in dealing with such uncertainty. The paper maintains that migration would expand an individual’s economic choices and opportunities. The fact that the migrants have information about and access to their origins in addition to their destination gives them possible diversification advantages. Consequently, these advantages influence the location decisions of migrants. The model shows that the presence of such consideration can be captured by introduction of the correlation of incomes in the origin and potential destinations in the structural empirical model of migration. The discrete choice model based on the random utility maximization has provided a credible framework and sound theoretical underpinnings for empirical investigation of migration and this paper’s hypothesis. However, in practice, the implementation of this methodology presents problems when the number of spatial choices is large. 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, and to test influence of the diversification concerns in migration decisions. The paper analyzes the migration from the United States rural counties to urban counties. The results show that the diversification concerns have significant effects on location decisions of the rural-urban migrants in the United States.
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