Understanding migration aversion using elicited counterfactual choice probabilities

Gizem Kosar, Tyler Ransom and Wilbert van der Klaauw

Journal of Econometrics, 2022, vol. 231, issue 1, 123-147

Abstract: This paper investigates how migration and location choice decisions depend on a large set of location characteristics, with particular focus on measuring the importance and nature of non-monetary costs of moving. We employ a stated-preference approach to elicit respondents’ choice probabilities for a set of hypothetical choice scenarios, using two waves from the NY Fed’s Survey of Consumer Expectations. Our stated probabilistic choice approach allows us to recover the distribution of individual-level preferences for location and mobility attributes without concerns about omitted variables and selection biases that hamper analyses based on observed mobility choices alone. We estimate substantial heterogeneity in the willingness-to-pay (WTP) for location characteristics and in moving costs, both across and within demographic groups. We find moving costs to be strongly associated with attachment to the current neighborhood and dwelling and to social networks. Our results indicate evidence of sorting into current locations based on preferences for location attributes as well as a strong negative association between respondents’ non-monetary moving costs and their moving expectations and actual mobility decisions.

Keywords: Subjective probabilities; Stated choice methodology; Migration; Location choice (search for similar items in EconPapers)
JEL-codes: D84 J61 R23 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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Related works:
Working Paper: Understanding Migration Aversion Using Elicited Counterfactual Choice Probabilities (2020)
Working Paper: Understanding migration aversion using elicited counterfactual choice probabilities (2019)
Working Paper: Understanding Migration Aversion using Elicited Counterfactual Choice Probabilities (2019)
Working Paper: Understanding Migration Aversion Using Elicited Counterfactual Choice Probabilities (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:eee:econom:v:231:y:2022:i:1:p:123-147

DOI: 10.1016/j.jeconom.2020.07.056

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