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This paper investigates the economic and non-economic determinants of interregional migration for unskilled and skilled migrants in Italy for the period 1985-2006. In addition to the traditional variables of the Harris and Todaro model, we consider the impact of house prices, carbon dioxide emission and crime. Using a dynamic two-step panel generalized method of moments, the traditional model omits some important variables and may not be representative of migration flow. Our analysis confirms that for different periods we have to take into account different determinants. Moreover, the externalities are significant, indicating the importance of including broader quality of life as explanatory variables. [ABSTRACT FROM AUTHOR]