Interstate migration is a key measure of economic dynamism, as it reflects people’s ability to move to opportunity, adjust to local economic shocks, relocate based on preferences, and seek lower costs of living or higher wages.
During the Great Recession (2007-09), interstate migration declined in the U.S. sharply and remained subdued during the 2010s. A large literature is devoted to understanding the underlying causes of this decline. A key hypothesis is that the primary reason individuals move is for job opportunities and that these job-related moves have become less important over time.
However, a recent working paper by Alexander Bick, Adam Blandin, Karel Mertens and Hannah Rubinton documents an increase in interstate migration following the outbreak of the COVID-19 pandemic. Further, the working paper shows that much of this rise can be attributed to the growing share of workers that are doing their jobs from home.