Move = 0 - .005 Mc - .002 Yh + .007 Sh - .012 R -...

Move = ₀ - .005 M_c - .002 Y_h + .007 S_h - .012 R - .001 A + .068 U - .001 (Y_f/Y_h)

where

Move = 1 if moved; 0 if did not move

M_c = number of children

Y_h = head's earnings

S_h = head's schooling

R = 1 if relatives reside in the area; 0 if no relatives in the area

A = head's age

U = 1 if unemployed at original location; 0 if employed at original location

Y_f/Y_h = ratio of wife to husband earnings

1. Do older people have a higher probability of geographic mobility? Why?

Solutions

Expert Solution

No, "Older People" doesn't have a higher probability of geographic mobility. The explanation for this statement is given below:

Refer the equation given in the question:

Move = 0 - 0.005 M_c - 0.002 Y_h + 0.007 S_h - 0.012 R - 0.001 A + 0.068 U - 0.001 (Y_f/Y_h)

Here,

The mobility happens only if Move = 1 or more than 0 and at 0, mobility is nil (already stated in the question).

But, the factors that can equate the value of Move towards 1 are S_h and U (Head's Schooling and Employment Status) as these two variables have a positive slope (the variables are represented as positive in the equation). If these values increases, then only Move can come closer to 1.

Or in other words, it can be said that if the "Head's Schooling" is high and is "Unemployed at Original Location" (U = 1), then only there is a chance that mobility might happen.

On the other hand, if the person is older, the value of "A" (Head's Age) will be higher. This will decrease the value of Move as the slope of this variable is negative (the variables is represented as negative in the equation) and in this case, mobility will not happen because as "A" increases, the value of Move will decrease and it might become 0 or even less than it. Thus it can be stated that if the heads age is too high, there can't be any mobility.

End of the Solution...

orchestra answered 1 year ago

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