Probabilistic Income-Maximizing Behavior in Regional Migration: An Empirical Test

This paper provides an empirical test of the hypothesis that migrants consider income risk in their evaluation of the returns to migration in that higher levels of income risk for a given region reduce the rate of net migration into that region. Theoretical approaches to the incorporation of income risk in migration models are first considered and alternative approaches are then tested using data on white and nonwhite net migration in the United States between 1960 and 1970. The results indicate support for the hypothesis that the extent of net migration is inversely affected by income risk. (EXCERPT)