Jeremy McCauley, UCL and Bristol
Department seminar. Jeremy McCauley recently finished his PhD in Economics at University College London and he will be joining the University of Bristol as a lecturer . He will present a paper entitled "The Role of Information in Explaining the Lack of Welfare-Induced Migration".
This paper examines the role of information as a driver of domestic welfare-induced migration decisions. I exploit a policy reform in England where the government began publicly releasing quality star ratings for each area’s social services (social care). I study the effects of this “information shock” on the main service users, the elderly, and find a one star increase in publicly-released rating is associated with a 1.3% increase in the elderly population of that area. Based on empirical facts, I estimate a search model with learning, where the elderly search for areas with better social services and gradually learn their true quality. Mimicking the information shock, the model reveals that individuals are more influenced by the rating of their own area than by ratings for other areas. Those induced to move by the information shock experience welfare increases valued at £600 per year.
Host: Manudeep Bhuller