The Effect of Remote Job Opportunities on Internal Migration

• In Event: Migration as a Labor Market Force: Global Patterns and Local Consequences

Abstract

 This paper examines how remote job opportunities (RJOs) influence internal migration patterns in the United States. Motivated by migration theory, which emphasizes job search costs as a major factor behind relocation, the paper considers two opposing effects. RJOs can make migration easier for individuals who were previously discouraged by the risk of not finding a job in a new location. At the same time, they may reduce the need for moves that are solely motivated by the search for better career opportunities. Leveraging a nationally representative dataset of 11.5 million individuals, the study applies a shift-share IV and recursive bivariate probit model to ensure credible identification. The results show that working remotely reduces the probability of interstate migration by 34.9%, while increasing moves between local labor market areas by 26.7% and moves within the same area by 52.9%, relative to the mean. These findings suggest that remote work reduces long-distance migration but encourages medium and short distance moves, reshaping the geography of labor market adjustment.

Author

• Aghairza Mammadov, University of South Florida
  Presenting Author