That is how Greg Kaplan and Sam Schulhofer-Wohl explain the decline in internal migration in the United States.
the causes of decreased migration that we identify suggest that the economy may not be less flexible after all. Rather, low migration means that workers either do not need to move to obtain good jobs or have better information about their opportunities.
They suggest that returns to skill have tended to equalize across regions. I am not sure how to reconcile this with Enrico Moretti’s work.
Pointer from Timothy Taylor.
I wonder if extended unemployment benefits and generous welfare my be disincentives to work, hence less need to move.