The geographic mobility of displaced workers: Do local employment conditions matter?

Abstract

Using data drawn from the National Longitudinal Survey of Youth 1979, the Bureau of Labor Statistics, and County Business Patterns, this study investigates whether displaced workers adjust their job search strategies in response to local market conditions to favor migration out of declining labor markets. Empirical results from a Cox partial-likelihood proportional hazards model are supportive. A low density of local employment and low average wage levels are associated with shorter wait times to migration. Conversely, high local employment growth rates, high wages, and low unemployment rates correlate with an increased likelihood of obtaining local employment following displacement.