Geographic Immobility

Workers take root geographically. Many are reluctant to move to new places, to leave friends, relatives, and associates, to force their children to change schools, to sell their houses, or to incur the costs and inconveniences of adjusting to a new job and a new community. As Adam Smith noted more than two centuries ago, "A [person] is of all sorts of luggage the most difficult to be transported." The reluctance or inability of workers to move creates geographic wage differentials within the same occupation to persist.

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