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

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.

Urban‐to‐rural Population Growth Linkages: Evidence From Oecd Tl3 Regions*

“…It has also been found that different types of regional amenities are associated with the attractiveness of regions, both in the United States and Europe (Partridge, 2010;Rodríguez-Pose and Ketterer, 2012). Finally, recent evidence shows that decisions to migrate across rural and urban areas are also made to enlarge a household's set of opportunities (diversification; Arzaghi and Rupasingha, 2013).…”

Dynamics and determinants of rural-urban migration in Southern Ethiopia

“…The study conducted by Montira (2010), Birhanu (2017), Arzaghi and Rupasingha (2013), Omonigho (2013), Zainab (2004), Feleke (2005, and Tumbe (2015a) found that individual-level characteristics such as gender, age, and years of schooling and household characteristic such as family size are the determinants of migration decisions. Moreover, Srinath (2010) and World Bank (2008) assessed the relative significance of push or pull factors in explaining the rural-urban migrations.…”

Immigration and location choices of native‐born workers in Canada

“…It is this information that reveals the risks associated with the long‐term prospect of an industry or occupation in a location. Even if the average wage in a specific industry in region A is higher than in region B, this comparison would not yield the information of whether the industry in region A is a ‘gaining’ or ‘losing’ industry relative to that in region B.The migration literature that defines the migration as an outcome of individuals’ utility maximization also recognizes that migration does not take place in a risk‐free environment (Arzaghi and Rupasingha ). People move not only in response to relatively favourable local standard attributes, but also in response to potential gains from the diversification of their choice set.…”