Does migration equalise regional unemployment rates? Evidence from Australia

The question of whether inter-regional migration serves to equilibrate regional economic performance is one which has received considerable attention in recent literature. This paper addresses this question, focussing on regional unemployment rates and real wages within the context of a 24-equation econometric model of the interaction between regional wages, regional unemployment and inter-regional migration in Australia. The main findings are that inter-regional equilibrating forces are slow and do not serve to equalize regional unemployment rates or wages.