Stranded! How Rising Inequality Suppressed US Migration and Hurt Those Left Behind

Author/Editor:

Tamim Bayoumi ; Jelle Barkema

Publication Date:

June 3, 2019

Electronic Access:

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Disclaimer: IMF Working Papers describe research in progress by the author(s) and are published to elicit comments and to encourage debate. The views expressed in IMF Working Papers are those of the author(s) and do not necessarily represent the views of the IMF, its Executive Board, or IMF management.

Summary:

Using bilateral data on migration across US metro areas, we find strong evidence that increasing house price and income inequality has reduced long distance migration, the type most linked to jobs. For those migrating uphill, from a less to a more prosperous location, lower mobility is driven by increasing house price inequlity, as the disincentives from higher house prices dominate the incentives from higher earnings. By contrast, increasing income inequality drives the fall in downhill migration as the disincentives from lower earnings dominate the incentives from lower house prices. The model underlines the plight of those trapped in decaying metro areas—those “left behind”.

Series:

Working Paper No. 19/122

Subject:

English

Publication Date:

June 3, 2019

ISBN/ISSN:

9781498311373/1018-5941

Stock No:

WPIEA2019122

Price:

$18.00 (Academic Rate:$18.00)

Format:

Paper

Pages:

34

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