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Regional Disparities and Labour Mobility: the Euro-11 versus the USA

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Author Info
Chiara Bentivogli
Patrizio Pagano

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Abstract

In this paper we assess whether regional disparities in the euro area stimulate labour mobility, using migration behaviour in US states as a benchmark. Large regional disparities within European countries and size differences between them and US states led us to select regions as the appropriate unit of analysis for Europe. While the level of net immigration flows with respect to population is similar in the USA and the euro area, our study shows that its sensitivity to regional disparities differs considerably. Indeed, migration is much more significantly influenced by income disparities in the USA than it is in the Euro-11, both in the short and the long term. Furthermore, the responsiveness of net migration inflows to shocks to the relative unemployment rate is negative in the regions of the USA, but nil in those of the Euro-11. Finally, risk factors (identified in the theoretical model as the variance of income) are significant determinants of migration decisions in Europe but not in the USA. Copyright Fondazione Giacomo Brodolini and Blackwell Publishers Ltd 1999.

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Article provided by CEIS, Fondazione Giacomo Brodolini and Blackwell Publishing Ltd in its journal Labour.

Volume (Year): 13 (1999)
Issue (Month): 3 (09)
Pages: 737-760
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Handle: RePEc:bla:labour:v:13:y:1999:i:3:p:737-760

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  2. Jennifer Hunt, 2000. "Why Do People Still Live in East Germany?," NBER Working Papers 7564, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  3. Jan Fidrmuc, . "Migration and regional adjustment to asymmetric shocks in transition economies," CPB Discussion Papers 7, CPB Netherlands Bureau for Economic Policy Analysis. [Downloadable!]
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  4. Peter Huber, 2004. "Inter-regional mobility in Europe: a note on the cross-country evidence," Applied Economics Letters, Taylor and Francis Journals, vol. 11(10), pages 619-624, August. [Downloadable!] (restricted)
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  5. Ashok Parikh & Michiel Van Leuvensteijn, 2003. "Interregional labour mobility, inequality and wage convergence," Applied Economics, Taylor and Francis Journals, vol. 35(8), pages 931-941, January. [Downloadable!] (restricted)
  6. Jan Fidrmuc, 2002. "Migration and Regional Adjustment and Asymmetric Shocks in Transition Economies," William Davidson Institute Working Papers Series 441, William Davidson Institute at the University of Michigan Stephen M. Ross Business School. [Downloadable!]
  7. Ugo Fratesi & Massimiliano Riggi, 2004. "Migration and Regional Disparities: the Role of Skill Biased Flows," Urban/Regional 0407004, EconWPA. [Downloadable!]
  8. Ashok Parikh & Michiel Van Leuvensteijn, 2002. "Internal Migration in Regions of Germany: A Panel Data Analysis," Economics Working Papers 012, European Network of Economic Policy Research Institutes. [Downloadable!]
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