The pursuit of happiness? Subjective wellbeing and internal migration in Great Britain

In 2011 the UK government announced future plans to use subjective wellbeing as a measure of economic success. Understanding both the individual and geographic determinants of subjective wellbeing is important for future policy makers. Internal migration has important impacts on the geographic composition of populations, and if found to impact on individual wellbeing; could have significant effects on geographical variations in wellbeing. The effect of internal migration on individuals has largely been focussed in the labour literature, assessing employment and earnings changes with migration. This paper assesses the effects of internal migration on subjective wellbeing in Great Britain. We use nationally representative data from the eighteen waves (1991-2008) of the British Household Panel Survey. The panel structure of the data is ideal for migration analysis, and the data contains a wide range of personal, labour market, and health characteristics of respondents. Migration is measured by residential moves. Wellbeing is measured using the 12-point version of the General Health Questionnaire. The effects of migration on the GHQ score are measured in the year following a move and by previous moving preference. The methodology controls for the potential endogeneity of the migration decision and potential correlation between unobserved heterogeneity and the covariates. The results suggest the effects of migration differ by preference to move the previous period. Internal migration could have important impacts on geographic inequalities in wellbeing.