| Abstract: This paper presents a model of location decisions of a multi-period, finite-life, utility maximizing individual and an empirical hazard rate analysis of return migration for Puerto Rican born males who worked in the United States during the 1980s. A potential migrant is assumed to consume leisure, purchased goods, and local amenities and to be retired in his final period of life. We show that it is optimal for him to migrate in the first period or to never migrate. Given that migration occurs, return migration is likely when he retires from the labor market. The reason is local amenities, including nearness to family, friendly culture, pleasant climate, and familiar places, which are complementary with leisure, weigh heavily in consumption... |
