Why are Americans moving less? Perhaps they don’t need to

Washington Post: Why are Americans moving less? Perhaps they don’t need to.

… But a recent paper (pdf) from the Federal Reserve Bank of Minneapolis suggests that none of these theories match the data. (For instance, the decline in migration is most pronounced among the young, not the old.) Instead, argue Greg Kaplan and Sam Schulhofer-Wohl, Americans are moving less because they don’t need to move as much. “Low migration,” they write, “is good news.”

It all comes down to two things. First, the authors write, jobs in the United States are no longer quite as geography-specific as they used to be. Sure, if you want to work in finance, Wall Street is the most lucrative place for you. But for many other jobs, the wage boost that workers get from moving is shrinking. Possibly that’s due to the decline of manufacturing jobs — which are often location-specific — and the rise of the service sector, which is somewhat more uniform. Either way, this could help explain why “job-related moves” have been falling more rapidly than other types of moves.

But there’s another factor at work too, say the authors. It’s much easier nowadays for people to research and visit possible destinations before moving. And that may well be cutting down on pointless moves. …

… This, too, shows up in the numbers: Recent immigrants have become far less likely to move away from their original landing point. …


Comments

2 responses to “Why are Americans moving less? Perhaps they don’t need to”

  1. DennisS Avatar
    DennisS

    The primary reason people are moving less is the poor economy. People are less willing to take a risk in a down economy.
    It could be that the position is open because the previous employee could see the handwriting on the wall and found another position.
    In many families there is a understanding that they need two or more jobs in order to maintain their standard of living, and a move for one job means taking a risk that the other will find employment soon.
    Younger generations are more willing to stay near family in a down economy, as family and friends are the support network, since few have saved funds.
    For evidence of the effect of the economy, turn back to the Great Depression.
    There will always be a desire in our hearts to try a new adventure – new location, new job, etc. But right now many are staying in place because it would be too risky to move.

  2. I had similar thoughts. It will be interesting to see what happens as the economy heats up.
    I would not that the Great Depression did result in some mobility. Something like a 1/3 of the the population of Oklahoma left in the 1930s. I don’t know what the overall impact on mobility was. It would be interesting to know.

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