| Abstract: | This paper identifies the economic and demographic factors responsible for migration flows between Australia and New Zealand by means of a probabilistic model of emigration in both directions. The largely uncontrolled flows between the two countries have the same determinants as those commonly found in studies of internal migration. The cost of migration (proxied by the real cost of air travel), labour market conditions and the potential earnings differential play a role, although the results are modified by the incidence of return migration and age composition. |
