Document Type

Article

Publication Date

2006

Document Number

RESEARCH PAPER 2006-1

Abstract

This study examines the relationship between an individual’s occupation choice and destination choice. It portrays the relationship as an interaction between the supply of occupational skills by individuals and demand by different labor market regions. The analysis applies a two-equation simultaneous system: (1) a multinomial logit model of occupational choice and (2) a conditional logit model of state destination choice. The unusual merger of multinomial logit and conditional logit models in a simultaneous equation framework requires derivation of a unique variancecovariance matrix. The results indicate strong association between supply of (migration) and demand for (industry mix) an individual’s occupational skills. [JEL Classification: R23, J61, J62]

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