Internal Migration in Spain: Dealing with Multilateral Resistance and Nonlinearites

This paper investigates the determinants of internal mobility across Spanish provinces of both foreigners and natives over the decade 2004-14. Building on an extended gravity model, our econometric strategy controls for multilateral resistance to migration by including different fixed effects structures. Additionally, the paper allows for some nonlinearities in the key economic determinants of migration, wages and unemployment. The main finding is that the impact of economic factors on internal migration is higher for foreigners than for natives; furthermore, the effect of these factors on internal migration is clearly nonlinear for the group of natives, while this only happens for foreigners when dyadic fixed effects of origin-destination are considered. Finally, the paper shows that the nature of the amenities with the greatest impact on internal movements differs between the two groups: foreigners look for social services and cultural amenities, whereas natives are more attracted by good climate conditions.