Understanding rural migration in industrialised countries: the role of heterogeneity, amenities and social networks

This paper presents a micro-level econometric analysis of rural households migration decisions in industrialised countries. The role of heterogeneity, amenities, transaction costs and social networks is analysed within a latent class approach using Polish household data. The results suggest that rural migration is not only driven by labour market factors, but also by amenities and transaction costs. We identify heterogeneity for both. The former is especially determined by social network structures and the latter by households absolute levels of social capital. Our results have implications for rural policies focusing on the rural development and on the quality of life.