@article{Clark:132325,
      recid = {132325},
      author = {Clark, David E. and Herrin, William E. and Knapp, Thomas  A. and White, Nancy E.},
      title = {Incomplete Compensation and Migration Behavior: Has  Anything Changed Between 1990 and 2000?},
      journal = {Journal of Regional Analysis and Policy},
      address = {2006},
      number = {1100-2016-89791},
      pages = {13},
      year = {2006},
      abstract = {Spatial equilibrium models rely on migration to arbitrage  away differences in utility
across locations net of moving  costs, where remaining differences in wages and rents  reflect the
compensating differentials related to  site-specific amenities. Recent refinements to the  spatial
equilibrium model focus upon the prospect of  disequilibrium in amenity markets. Amenity
market  disequilibrium implies over- or under-compensation  (incomplete compensation) across
some locations, which  suggests a role for these factors in subsequent migration.  This paper follows
the theoretical and empirical approach  of Clark, Herrin, Knapp, and White (2003). An
intercity  wage regression is estimated where fixed effects capture  the impact of site characteristics
on wages. We then  regress the fixed effects on a comprehensive vector of site  attributes,
where the residuals capture incomplete  compensation in wages. The derived measures of  incomplete
compensation are included in a binary logit  model of migration. The results provide
further evidence  that incomplete compensation for site characteristics is a  significant factor in
migration decisions, and the findings  are consistent with tendencies toward spatial equilibrium.},
      url = {http://ageconsearch.umn.edu/record/132325},
      doi = {https://doi.org/10.22004/ag.econ.132325},
}