Spatial Dependence, Social Networks, and Economic Structures in Japanese Regional Labor Migration

This study empirically analyzes the determinants of regional labor migration in Japan, where small towns are disappearing due to shortage labor. Using spatial models origin–destination flows and considering network effects economic structures, we obtain results more consistent with standard theory, compared previous studies. In particular, find that decisions based on motivations high (low) unemployment rates origin (destination) regions low income important flows. Second, report effects, which help reduce costs, play a significant role relocation Finally, different definitions weights distance, volume traded goods, show dependence is most appropriately defined by similarity structures. other words, patterns similar between rely analogous activities.