Empirical investigation into the strength of the effect of wages, taxes, and job growth on migration has mirrored theoretical developments. In the early empirical literature, the primary explanatory variables were average wage and unemployment rates while in recent literature these variables have been replaced by more individual-specific variables. Unfortunately, and maybe inescapably, empirical research on the effects of wages, taxes and job growth on migration is confounded by the interconnectedness of these variables. This paper broadens the existing evidence regarding migration by focussing on wage and job growth differences on county level.
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