Structural Choice Equation Estimates
| 1 Type | 2 Types | ||||
|---|---|---|---|---|---|
| Parameter | Symbol | Coeff. | SE | Coeff. | SE |
| Job & location preferences | |||||
| Expected log earnings | (γ0) | 0.916** | 0.397 | 1.001** | 0.412 |
| Home production benefit | (γ1) | -0.902 | 3.477 | 11.333*** | 3.453 |
| Search cost | (γ2) | -1.195*** | 0.069 | -1.008*** | 0.070 |
| Birth state bonus | (γ3) | 0.207*** | 0.072 | 0.210*** | 0.072 |
| Birth division bonus | (γ4) | -0.002 | 0.073 | -0.003 | 0.073 |
| Switching costs | |||||
| Fixed cost | (θ12 – θ8) | 0.335** | 0.127 | 0.910*** | 0.126 |
| Age | (θ13 – θ9) | -0.095*** | 0.006 | -0.106*** | 0.006 |
| Age2/100 | (θ14 – θ10) | 0.109*** | 0.008 | 0.121*** | 0.008 |
| Unobserved type 1 | (θ15 – θ11) | -0.746*** | 0.019 | ||
| Moving costs | |||||
| Fixed cost | (θ0) | -3.148*** | 0.361 | -3.165*** | 0.362 |
| Distance (1,000 miles) | (θ1) | -2.063*** | 0.078 | -2.066*** | 0.078 |
| Distance2 | (θ2) | 0.369*** | 0.025 | 0.369*** | 0.025 |
| Age | (θ3) | -0.094*** | 0.018 | -0.101*** | 0.018 |
| Age2/100 | (θ4) | 0.056** | 0.023 | 0.063*** | 0.023 |
| Employedt–1 | (θ5) | 0.197* | 0.110 | 0.252** | 0.110 |
| Unemployedt–1 | (θ6) | -0.230* | 0.128 | -0.239* | 0.129 |
| Unobserved type 1 | (θ7) | 0.256*** | 0.045 | ||
| Pr(type = 1) | (πr) | N/A | 0.4926 | ||
| Observations | 50,415 | 50,415 | |||
| Persons | 16,648 | 16,648 | |||
| Discount factor | (β) | 0.9 | 0.9 | ||
Notes: Reported numbers are flow utility parameter estimates from the dynamic choice model detailed in Online Appendix Section A.1. Estimates of location-specific amenities (the αβs) are not reported due to Census Bureau rules regarding disclosure risk.
↵* p < 0.10,
↵** p < 0.05,
↵*** p < 0.01.