“…This finding supports the existence of environmental non-economic (non-market) pure externalities that exacerbate the incentives to move to another country. Similar evidence has been obtained by Rappaport and Sachs [79] and Rappaport [78] for the case of the US, and by Cheshire and Magrini [18] for Europe. These articles suggest that weather-related migration, in richer regions like the US or Europe, may be due to a larger relative valuation of the environment from rising per capita income.…”
Section: Resultssupporting
confidence: 87%
“…Third, one should be able to account for the fact that weather anomalies could potentially affect international migration independently of the economic geography channel. Such a direct impact is consistent with studies emphasizing how weather variability may affect amenities [78] or pure nonmarket costs such as the spread of diseases or a higher probability of death due to flooding or excessive heat waves [93]. Hence, we label this the 'amenity channel'.…”
“…This finding supports the existence of environmental non-economic (non-market) pure externalities that exacerbate the incentives to move to another country. Similar evidence has been obtained by Rappaport and Sachs [79] and Rappaport [78] for the case of the US, and by Cheshire and Magrini [18] for Europe. These articles suggest that weather-related migration, in richer regions like the US or Europe, may be due to a larger relative valuation of the environment from rising per capita income.…”
Section: Resultssupporting
confidence: 87%
“…Third, one should be able to account for the fact that weather anomalies could potentially affect international migration independently of the economic geography channel. Such a direct impact is consistent with studies emphasizing how weather variability may affect amenities [78] or pure nonmarket costs such as the spread of diseases or a higher probability of death due to flooding or excessive heat waves [93]. Hence, we label this the 'amenity channel'.…”
“…According to the model, a shift in labor supply in a city is largely a function of its amenities while labor demand is largely a function of the city's human capital. Past research has demonstrated that climate is a significant and important determinant of labor supply (Rappaport, 2007). Assuming a pleasant climate is a normal good, increasing income over time should be making this amenity increasingly valuable.…”
“…We use a generalized method of moments (GMM) procedure to produce t-statistics that are robust to general forms of cross-sectional spillovers or spatial autocorrelation (Conley, 1999;Rappaport, 2007). The bandwidth is 200 km, after which we follow convention and assume no correlation in county residuals.…”
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