THE JOINT CHOICE OF AN INDIVIDUAL'S OCCUPATION AND DESTINATION*

ABSTRACT This study examines the relationship between an individual's occupation choice and destination choice. It portrays the relationship as an interaction between the supply of occupational skills by individuals and demand by different labor‐market regions. The unusual merger of a multinomial logit model of occupational choice and the conditional logit model of destination choice in a simultaneous equation framework requires derivation of a unique variance–covariance matrix. Results indicate strong association between supply of (migration) and demand for (industry mix) an individual's occupational skills. These effects are especially strong for destinations experiencing slow economic growth, while relatively unimportant for high‐growth locations.