Abstract
There is ample evidence that internal migration is a vehicle for upwards economic and social mobility, particularly amongst young educated people, with studies documenting favourable effects on objective labour market outcomes such as employment status, earnings and occupational standing. However, this literature has been more silent about the potential effects of internal migration on subjective measures of utility. In this paper I use panel data from Australia and Britain and panel regression models to examine whether and how internal migration is associated with young people’s self-reported job satisfaction, paying attention to the time dynamics underpinning the associations. This enables gaining a more holistic picture of the outcomes associated with internal migration during early adulthood. Key findings indicate that long-distance and work-motivated migrations have positive and statistically significant effects on the job satisfaction of young people in Britain and Australia, particularly amongst those who hold university degrees. Additionally, the results reveal time patterns in the ways in which job satisfaction and residential mobility intersect: long-term trends in job dissatisfaction can trigger internal migration, and internal migration can set long-term onwards trends in job satisfaction. I conclude by calling for further research on the outcomes of internal migration on subjective well-being leveraging the properties of panel data and using a life course approach.
Similar content being viewed by others
Notes
These arguments resonate with emerging literature on ‘post-move’ satisfaction. This has largely focused on the effects on happiness and life satisfaction of interregional and international migration. For an overview, see Simpson (2011).
Attrition rates in both surveys are relatively low. As an illustration, respondent retention rates for the last available survey wave were 92.3 % in the HILDA Survey and 95 % in the BHPS. As can be expected, migrants’ attrition rates are larger than non-migrants’ attrition rates in both the HILDA Survey (Watson and Wooden 2009) and the BHPS (Buck 2000), but existing literature on the outcomes of internal migration using these data argues that this does not distort results (Taylor 2007; Rabe and Taylor 2010; Perales and Vidal 2013; Nowok et al. 2013).
I also exclude individuals who entered the survey in ‘top up’ samples in waves 7, 9 and 11 of the BHPS (their inclusion hampers national representativeness) and wave 11 in the HILDA Survey (they are only observed in one survey wave).
The BHPS includes also measures of satisfaction with promotion prospects, relations with the boss and the use of initiative at work, but these are not available in all survey waves.
This was accomplished through the following transformation: new score \(=\) (original score \(-1)^{*}(10/6)\).
These variables refer only to the first migration observed during the observation window which may or may not coincide with the first actual migration undertaken by the respondent. This is a generalised issue in internal migration research using household panels and a caveat of my analyses. The effect of internal migration on job satisfaction may vary depending on whether or not the observed move is the first move an individual has experienced since labour market entry. If this was the case, this may introduce noise in the analyses.
Job satisfaction variables are actually ordered variables, but assuming cardinality in fixed-effect modelling has been shown to be unproblematic (Ferrer-i-Carbonell and Frijters 2004).
I choose the 90 % level instead of the more common 95 % level for two reasons. First, as seen in Table 2, long-distance and work-related internal migrations are rare events. Even in large datasets such as those used here, this translates into low statistical power and a risk of Type II errors. Second, fixed-effect models provide estimates which are less biased than those from other specifications (e.g. OLS or random-effect models) but this is at the expense of sacrificing efficiency. In fixed-effect models only the within-individual variability in the panel data is used and all between-individual variability is discarded on the grounds that it may be ‘contaminated’ by unobservables. This makes these models relatively inefficient and likely to feature large standard errors.
In separate analyses I tested whether moving to certain regions/states was associated with greater overall job satisfaction returns to migration, using models including interactions between migration and region/state variables. Few of the interaction effects were statistically significant. In the BHPS data, relative to moving over a long distance to London, moving to the East Midlands or Scotland was associated with higher overall job satisfaction. Relative to moving for work-related reasons to London, moving to Wales was associated with lower overall job satisfaction. None of the interactions between migration and state of residence were statistically significant in the Australian data, with New South Wales as the reference category. These results are available from the author upon request.
It is also possible that, for moves motivated by individuals involuntarily losing their jobs, such trends simply reflect increasing job insecurity (leading to decreasing satisfaction) as the job separation approaches (Blanchflower and Oswald 1999).
References
Abreu M, Faggian A, McCann P (2015) Migration and inter-industry mobility of UK graduates. J Econ Geogr 15(2):353–385
Allison PD (2009) Fixed effects regression models. Sage, Thousand Oaks
Bartel AP (1979) The migration decision: what role does job mobility play? Am Econ Rev 69:775–786
Blau PM, Duncan OD (1967) The American occupational structure. Wiley, New York
Bell M, Charles-Edwards E (2013) Cross-national comparisons of internal migration: an update of global patterns and trends. Technical paper 2013/1, New York, United Nations Population Division
Blanchflower DG, Oswald AJ (1999) Well-being, insecurity and the decline of American job satisfaction. NBER working paper 7487
Böheim R, Taylor M (2007) From the dark end of the street to the bright side of the road? The wage returns to migration in Britain. Labour Econ 14:99–117
Bernard A, Bell M, Charles-Edwards E (2014) Life-course transitions and the age profile of internal migration. Popul Dev Rev 40:213–239
Borjas GJ (1987) Self-selection and the earnings of immigrants. Am Econ Rev 77:531–553
Boyle P, Halfacree KH, Robinson V (2013) Exploring contemporary migration. Routledge, New York
Buck NH (2000) Using panel surveys to study migration and residential mobility. In: Rose D (ed) Researching social and economic change. Routledge, London, pp 250–272
Clark AE, Diener E, Georgellis Y, Lucas RE (2008) Lags and leads in life satisfaction: a test of the baseline hypothesis. Econ J 118:F222–F243
Clark WA, Huang Y (2006) Balancing move and work: women’s labour market exits and entries after family migration. Popul Space Place 12:31–44
Clark WA, Maas R (2015) Interpreting migration through the prism of reasons for moves. Popul Space Place 21(1):54–67
Clark AE, Georgellis Y (2013) Back to baseline in Britain: adaptation in the BHPS. Economica 80:496–512
Conti G, Pudney S (2011) Survey design and the analysis of satisfaction. Rev Econ Stat 93:1087–1093
Cooke TJ (2008) Migration in a family way. Popul Space Place 14:255–265
Cooke TJ, Boyle P, Couch K, Feijten P (2009) A longitudinal analysis of family migration and the gender gap in earnings in the United States and Great Britain. Demography 46:147–167
Corcoran J, Faggian A, McCann P (2010) Human capital in remote and rural Australia: the role of graduate migration. Growth Change 41:192–220
Coulter R, Van Ham M, Findlay AM (2013) New directions for residential mobility research: linking lives through time and space (No.). IZA discussion paper, 7525
Czaika M, Vothknecht M (2014) Migration and aspirations—are migrants trapped on a hedonic treadmill? IZA J Migr 3:1–21
Ferrer-i-Carbonell A, Frijters P (2004) How important is methodology for the estimates of the determinants of happiness? Econ J 114:641–659
Flippen C (2014) U.S. internal migration and occupational attainment: assessing absolute and relative outcomes by region and race. Popul Res Policy Rev 33:31–61
Freeman RB (1978) Job satisfaction as an economic variable. Am Econ Rev 68:135–41
Geist C, McManus PA (2008) Geographical mobility over the life course: motivations and implications. Popul Space Place 14:283–303
Greenwood MJ (1997) Internal migration in developed countries. In: Rosenzweig MR, Stark O (eds) Handbook of population and family economics, vol 1b. Elsevier, Amsterdam, pp 647–720
Gordon IR (1982) The analysis of motivation-specific migration streams. Environ Plan A 14:5–20
Huinink J, Kulu H, Mulder CH, Schneider N, Vidal S (2014) The two sides of the same coin: challenges of policy-making for a mobile Europe. Popul Policy Compact 8/2014
Huinink J, Vidal S, Kley S (2014) Individuals’ openness to migrate and job mobility. Soc Sci Res 44:1–14
Iammarino S, Marinelli E (2011) Is the grass greener on the other side of the fence? Graduate mobility and job satisfaction in Italy. Environ Plan A 43:2761–2777
Krieg RG (1997) Occupational change, employer change, internal migration, and earnings. Reg Sci Urban Econ 27:1–15
Kristensen N, Westergaard-Nielsen N (2006) The reliability of job satisfaction measures. J Happiness Stud 8:273–292
Kodrzycki YK (2001) Migration of recent college graduates: evidence from the national longitudinal survey of youth. N Engl Econ Rev 1:13–34
Martin JK, Lichter DT (1983) Geographic mobility and satisfaction with life and work. Soc Sci Q 64:524–535
Mathios AP (1989) Education, variation in earnings, and nonmonetary compensation. J Hum Resour 24:456–468
Mayer KU (2009) New directions in life course research. Annu Rev Sociol 35:413–433
Morrison PS, Clark WAV (2011) Internal migration and employment: macro flows and micro motives. Environ Plan A 43:1948–1964
Nordström-Skans O (2004) Scarring effects of the first labour market experience: a sibling based analysis. IFAU-Institute for Labour Market Policy Evaluation working papers, 2004-14
Nowok B, van Ham M, Findlay AM, Gayle V (2013) Does migration make you happy? A longitudinal study of internal migration and subjective well-being. Environ Plan A 45:986–1002
Oswald AJ, Proto E, Sgroi D (2009) Happiness and productivity. IZA discussion papers no. 4645
Perales F, Tomaszewski W (2015) Happier with the same: job satisfaction of disadvantaged workers. Forthcoming in Br J Ind Relat. doi:10.1111/bjir.12152
Perales F, Vidal S (2013) Occupational characteristics, occupational sex-segregation and family migration decisions. Popul Space Place 19:487–504
Rabe B, Taylor MP (2010) Residential mobility, quality of neighbourhood and life course events. J R Stat Soc Ser A 173:531–555
Rogers A, Castro LJ (1981) Model migration schedules. International Institute for Applied Systems Analysis, research report RR-81-30
Sen AK (2000) Social exclusion: concept, application, and scrutiny (No. 1). Manila: Office of Environment and Social Development, Asian Development Bank
Sjaastad LA (1962) The costs and returns of human migration. J Polit Econ 70:80–93
Simpson NB (2011) Happiness and migration. In: Zimmerman K, Constant A (eds) International handbook on the economics of migration. Edward Elgard, Cheltenham, pp 393–408
Siow E, Ng J (2012) Internal migration of nurses in the united states: migratory prompts and difference in job satisfaction between migrants and non-migrants. Nurs Econ 31:128–136
Spitze G (1984) The effects of family migration on wives’ employment: how long does it last? Soc Sci Q 65:21–36
Switek M (2014) Internal migration and life satisfaction: well-being paths of young adult migrants. Online access in Soc Indic Res. doi:10.1007/s11205-014-0829-x
Taylor MP (2007) Tied migration and subsequent employment: evidence from couples in Britain. Oxf Bull Econ Stat 69:795–818
Taylor MF (ed) (2010) British Household Panel Survey user manual volume A: introduction, technical report and appendices. University of Essex, Colchester
Vidal S, Perales F, Baxter J (2015) Dynamics of domestic labour across short- and long-distance family relocations. Forthcoming in J Marriage Fam. doi:10.1111/jomf.12269
Watson N, Wooden M (2009) Identifying factors affecting longitudinal survey response. In: Lynn P (ed) Methodology of longitudinal surveys. Wiley, Chichester, pp 157–182
Watson N, Wooden M (2012) The HILDA survey: a case study in the design and development of a successful household panel study. Longitud Life Course Stud 3:369–381
Wilson FD (1985) Migration and occupational mobility: a research note. Int Migr Rev 2:278–292
Yankow JJ (2003) Migration, job change, and wage growth: a new perspective on the pecuniary return to geographic mobility. J Reg Sci 43:483–516
Zax JS (1994) When is a move a migration? Reg Sci Urban Econ 24:341–360
Acknowledgments
I would like to thank Sergi Vidal for helpful discussions and suggestions. The BHPS data used in this paper were made available through the Economic and Social Research Council (ESRC) Data Archive. The BHPS data were originally collected by the ESRC Research Centre on Micro-social Change at the University of Essex (now incorporated within the Institute for Social and Economic Research). Neither the original collectors of the data nor the Archive bears any responsibility for the analyses or interpretations presented here. This paper also uses unit record data from the HILDA Survey. The HILDA Project was initiated and is funded by the Australian Government Department of Social Services (DSS) and is managed by the Melbourne Institute of Applied Economic and Social Research (Melbourne Institute). The findings and views reported in this paper, however, are those of the author and should not be attributed to either DSS or the Melbourne Institute.
Author information
Authors and Affiliations
Corresponding author
Electronic supplementary material
Below is the link to the electronic supplementary material.
Rights and permissions
About this article
Cite this article
Perales, F. Dynamics of job satisfaction around internal migrations: a panel analysis of young people in Britain and Australia. Ann Reg Sci 59, 577–601 (2017). https://doi.org/10.1007/s00168-015-0728-3
Received:
Accepted:
Published:
Issue Date:
DOI: https://doi.org/10.1007/s00168-015-0728-3