The Gravity Model of Labor Migration Behavior

In this article, we present a dynamic inter-regional model, that is based on the gravity approach to migration and describes in continuous time the labor force dynamics between a number of conjugate regions. Our modification of the gravity migration model allows to explain the migration processes and to display the impact of migration on the regional economic development both for regions of origin and attraction. The application of our model allows to trace the dependency between salaries levels, total workforce, the number of vacancies and the number unemployed people in simulated regions. Due to the gravity component in our model the accuracy of prediction for migration flows is limited by the distance range between analyzed regions, so this model is tested on a number of conjugate neighbor regions. Future studies will be aimed at development of a multi-level dynamic model, which allows to construct a forecast for unemployment and vacancies trends on the first modeling level and to use these identified parameters on the second level for describing dynamic trajectories of migration flows.