Friday, October 29, 2021

Kids pay a price for staying close to home

Chapter 9 suggests that people have to be compensated for taking harder jobs, e.g., undertakers earn a premium for the work they do.  But the obverse of this is also true, that if you take more pleasant jobs, e.g., because they are close to home, you pay a penalty.  Marginal revolution reports on evidence of what they call "mobility shocks" on kids who were forced to move from a town where a third of the houses were covered by lava:

...estimates suggest that being induced to move by the “lava shock” dramatically raised lifetime earnings and education.
However, parents who were forced to move were slightly worse off.

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