5. Summary and conclusion
Dependence of migration decisions on multiple destinations has become an important topic in the migration literature (Bertoli and Moraga, 2013). We have presented a model of migration based on a richly specified structure originally developed in the trade theoretic literature following Eaton and Kortum (2002). We employ a technique originally developed by Caliendo et al. (2014) to pin down the migratory responses in a static multi-region, multi-sector economy. We convert it into a dynamic general equilibrium model. In steady state, the system is subjected to successive productivity shocks under realistic parameterization and from that we generate a directed and weighted network of migration. We use standard parameter values for U.S. economy to simulate the model, which performs well in explaining the network of labor flow across states of the U.S. and it matches the gross flow of labor with the real data reasonably well. Apart from providing a model of the multilateral gravity equations, we have also experimented with possible changes in the capital intensity, preferences as well as the trade patterns. The results show that the aggregate level of migration can be substantially affected due to such changes. In particular, increase in capital intensity significantly reduces the aggregate level of migration.