INTERREGIONAL MIGRATION AND INTERINDUSTRY LABOR MOBILITY IN CANADA - A SIMULTANEOUS APPROACH

This paper argues that interindustry labour mobility and interregional migration are simultaneously determined processes. It estimates a bivariate probit model of migration and mobility and concludes that the interindustry mobility of labour is dominated by the availability of employment hours, and that wage differentials are a statistically significant, but small, determinant of interregional migration. The receipt of transfer payments is not associated with lower mobility. Since interindustry mobility is much larger in magnitude than interregional migration, quantity constraints in labour markets are of central importance to the adaptive capacity of the economy.