The Effect of Job Advertising Policies on Interregional Labor Migration

A simulation model of a multiregional labor migration process is developed. Information about employment conditions in alternative regions is transmitted in a combination of three channels. The adopted emission policies directly control the amount of information available to potential migrants which, in turn, determines the potential migrant's perception of the level of welfare in the other regions. The effect of several different advertising policies on migration streams is examined. Employers can pursue a number of policies designed to maximize their return. Other agencies adopt policies that facilitate the matching process between unemployed workers and vacant jobs. Results are presented for a number of simulation experiments.