People who live in declining areas are more likely to have been born nearby, which implies that they have idiosyncratic ties to where they live. Labor demand shocks to places where people have higher levels of these local ties, proxied by their birth places, lead to less migration and larger movements into and out of the labor market. A model of spatial equilibrium that includes a distribution of workers' preferences for living in their birth places matches these facts and suggests further implications. Declines in local productivity lead to lower migration elasticities and larger declines in real wages after further declines in productivity. Population can take generations to adjust, since ties can only be reallocated slowly. Across a wide class of models, lower migration elasticities make subsidies to local areas more efficient, since they change fewer people's locations. Local subsidies are more efficient in declining areas, where they are the most common.Keywords: Migration, Local Labor Markets, Demography, Growth, Decline JEL Numbers: J61, R23, E62, R58, H31, D61, J11 * University of Michigan Department of Economics, zabek@umich.edu. I owe particular thanks to my advisors, Dominick Bartelme, John Bound, Joshua Hausman, and Matthew Shapiro, for patience, perspective, knowledge, and encouragement. Helpful comments from a number of people were also invaluable. These people include, but are not limited to: Aditya Aladangady, Martha Bailey, C. Hoyt Bleakley, Lawrence Blume, Charles Brown, Patrick Coate, Ben Farber, Pamela Giustinelli, David Green, Chris House, Pawel Krolikowski, John Laitner, David Lam, Andrei Levchenko, Corinne Low, Jessica Ott, Linda Tesar, Michel Serafinelli, Robert Schoeni, Christopher Smith, Melvin Stephens, Bryan Stuart, Robert Willis, Abigail Wozniak, and seminar participants at the University of Michigan, the University of Pennsylvania SSPF, H2D2 research day at the University of Michigan, the Population Association of America, the Midwest Economics Association, the Midwest Macro Association, the Urban Economics Association, the US Census Bureau, the 2017 SOLE meetings, the Barcelona GSB Summer Forum, The Federal Reserve Bank of Cleveland, Cleveland State University, the Upjonh Institute, the SPP1764 conference at the German Bundesagentur fr Arbeit, and several potential employers. I am grateful to David Dorn for sharing data and code both via his website and through personal correspondence. The research was supported in part by NICHD center grant (R24 HD041028) to the Population Studies Center at the University of Michigan and through computational resources and services provided by Advanced Research Computing at the University of Michigan. Earlier versions of this paper circulated as "Population growth, decline, and shocks to local labor markets" and "Implications of local ties in spatial equilibrium."In spatial equilibrium, the marginal person will be equally well off, no matter where she lives (Rosen (1979) and Roback (1982)). Most people are not marginal, however. Kennan and...
Inequality in U.S. housing prices and rents both declined in the mid-20th century, even as home-ownership rates rose. Subsequently, housing-price inequality has risen to preWar levels, while rent inequality has risen less. Combining both measures, we see inequality in housing consumption equivalents mirroring patterns in income across both space and time, according to an income elasticity of housing demand just below one. These patterns occur mainly within cities, and are not explained by observed changes in dwelling characteristics or locations. Instead, recent increases in housing inequality are driven most by changes in the relative value of locations, seen especially through land.
Young adults, ages 25 to 35, who live in the same neighborhoods as their parents experience stronger earnings recoveries after a job displacement than those who live farther away. This result is driven by smaller on-impact wage reductions and sharper recoveries in both hours and wages. We show that geographic mobility, different job search durations, housing transfers, and ex-ante differences between individuals are unlikely explanations. Our fi ndings are consistent with a framework in which some individuals living near their parents face a better wage-offer distribution, though we fi nd no direct evidence of parental network effects.
In this paper, we study declines in women’s labor force participation by race and ethnicity as well as the presence of children. We find that increases in labor force exits were larger for Black women, Latinas, and women living with children. In particular, we find larger increases in pandemic-era labor force exits among women living with children under age 6 and among lower-earning women living with school-age children after controlling for detailed job and demographic characteristics. Latinas and Black women also had larger increases in labor force exits during the pandemic relative to White women. Differences in the presence of children and household structure explain one-quarter of the excess labor force exits among women of color.
scite is a Brooklyn-based organization that helps researchers better discover and understand research articles through Smart Citations–citations that display the context of the citation and describe whether the article provides supporting or contrasting evidence. scite is used by students and researchers from around the world and is funded in part by the National Science Foundation and the National Institute on Drug Abuse of the National Institutes of Health.
hi@scite.ai
10624 S. Eastern Ave., Ste. A-614
Henderson, NV 89052, USA
Copyright © 2024 scite LLC. All rights reserved.
Made with 💙 for researchers
Part of the Research Solutions Family.