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 biv ariate probit model of migration and mobility and concludes that the i nterindustry mobility of labour is dominated by the availability of em ployment hours, and that wage differentials are a statistically signif icant, but small, determinant of interregional migration. The receipt of transfer payments is not associated with lower mobility. Since inte rindustry mobility is much larger in magnitude than interregional migr ation, quantity constraints in labour markets are of central importanc e to the adaptive capacity of the economy.