Why are Higher Skilled Workers More Mobile Geographically? The Role of the Job Surplus
Author: Michael Amior. CEP Discussion Paper No 1338 March 2015
Monday 6 April 2015, by Carlos San Juan
The skill gap in geographical mobility is entirely driven by workers who report moving for a new job.
A natural explanation lies in the large expected surplus accruing to skilled job matches. Just as large
surpluses ease the frictions which impede job search in general, they also help overcome those
frictions (specifically moving costs) which plague cross-city matching in particular. I reject the
alternative hypothesis that mobility differences are driven by variation in the moving costs
themselves, based on PSID evidence on self-reported willingness to move. Evidence on wage
processes also supports my claims.