We apply a modified gravity model to Japanese municipal-level migration and demographic
data to examine the drivers of domestic migration. We focus on the human capital stock of
municipalities, measured by the share of university graduates in the municipal population,
and human capital related variable, identified as a shortage rate of nursery school capacity.
Our results reveal the migration pattern from municipalities with low to high human capital
stock or to better conditions. Moreover, the positive impact of human capital stock is larger …