TY  - RPRT
        AU  - Hansen, Jörgen
AU  - Lkhagvasuren, Damba
        TI  - New Evidence on Mobility and Wages of the Young and the Old
        PY  - 2015/Aug/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 9258
        UR  - https://www.iza.org/publications/dp9258
        AB  - We present new evidence on the wage and mobility of young and old workers, which is difficult to explain using standard human capital theory. Instead, we propose a simple dynamic extension of the Roy model, where worker migration and wages are jointly determined at the individual level. According to this model, a higher moving cost among older workers is the main factor driving the lower mobility among this group. Because of the higher moving costs, older workers require a higher wage increase to move across regions than younger workers, a pattern that is consistent with individual-level U.S. data. We also find an interesting dynamic effect suggesting that, given a persistent labor income shock, a higher future moving cost makes workers more mobile today.
        KW  - geographic mobility
KW  - labor mobility by age
KW  - labor income shock
KW  - moving cost
KW  - multi-sector model
        ER  -