TY  - EJOUR
AB  - 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.
AU  - Clark, David E.
AU  - Herrin, William E.
AU  - Knapp, Thomas A.
AU  - White, Nancy E.
DA  - 2006
DA  - 2006
DO  - 10.22004/ag.econ.132325
DO  - doi
ID  - 132325
IS  - 2
JF  - Journal of Regional Analysis and Policy
KW  - Community/Rural/Urban Development
KW  - Public Economics
L1  - https://ageconsearch.umn.edu/record/132325/files/06-2-3.pdf
L2  - https://ageconsearch.umn.edu/record/132325/files/06-2-3.pdf
L4  - https://ageconsearch.umn.edu/record/132325/files/06-2-3.pdf
LA  - eng
LK  - https://ageconsearch.umn.edu/record/132325/files/06-2-3.pdf
N2  - 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.
PY  - 2006
PY  - 2006
T1  - Incomplete Compensation and Migration Behavior: Has Anything Changed Between 1990 and 2000?
TI  - Incomplete Compensation and Migration Behavior: Has Anything Changed Between 1990 and 2000?
UR  - https://ageconsearch.umn.edu/record/132325/files/06-2-3.pdf
VL  - 36
Y1  - 2006
T2  - Journal of Regional Analysis and Policy
ER  -