Migration under uncertainty about quality of locations. |
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Authors: | G Bhattacharya |
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Abstract: | "This paper develops a search-theoretic framework for analyzing migration decisions of workers who can only observe the quality of a location by migrating to the location after accepting a job there. After learning the location quality, the worker can stay at the current job, search locally at the same location, or search for a job at another location (leading to repeat migration). This paper develops the properties of optimal search, migration, and repeat migration decisions, and finds how revealed location quality influences the tradeoffs between local search and repeat migration. The effects of search costs and better job opportunities on the reservation levels of wages and revealed quality levels are also determined." |
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