Abstract
What is the role of migration in regional evolutions? I document that within-U.S. migration causes a reduction in the unemployment rate of the receiving city,over several years. To establish this causal effect, I construct an instrument using outmigration of other places and predict its destination from historical patterns. The decline in unemployment is due to housing. Housing is durable, so increased demand causes a surge of new houses and construction jobs. Additionally, migrants’ housing demand raises prices, increasing borrowing and non-tradable employment. This finding implies the endogenous response of migration amplifies local labor demand shocks by about 20 percent.
| Original language | English (US) |
|---|---|
| Place of Publication | American Economic Journal: Macroeconomics |
| State | Accepted/In press - 2019 |
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Cite this
Howard, G. (Accepted/In press). The Migration Accelerator: Labor Mobility, Housing, and Demand.