Regional migration in Australia: Labour market response or pursuit of amenity?

The persistence of differential labour market outcomes has led to the recognition that labour mobility may be influenced by both labour market variables and non-pecuniary factors such as amenity and quality of life. Using regional-level panel data and a fixed-effects estimation procedure, we examine the relationship between labour mobility decisions and unemployment levels, amenity, as well as variables related to previous migration experience, location, the mining boom and the presence of a program designed to encourage labour mobility to regional areas. We find that labour market factors influence mobility decisions, but that these are moderated by amenity, and that mobility is also influenced by anthropocentric amenity. The findings with respect to anthropocentric amenity as well as the program designed to encourage regional relocation provide evidence of the potential effectiveness of government policies designed to overcome labour market impediments.