Baumann, Robert; Svec, Justin; Sanzari, Francis - Department of Economics and Accounting, College of the … - 2012
This paper examines the impact of unemployment on migration. In a theoretical model, we show that unemployment, per se …, does not affect migration. Rather, migration only occurs when unemployment shocks force residents to update their … expectations of the area's unemployment rate. Once these expectations change, migration reallocates labor to bring the economy back …