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Unemployment and Migration: Does Moving Help?

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  • Pekkala, Sari
  • Tervo, Hannu

Abstract

The migration behaviour of the unemployed in Finland is analysed in terms of the causal effect of moving on individual employment status. In 1994, 17 percent of the labour force was unemployed and the unemployment rate exhibited a very slow decline in 1994-1996. Over half of those who were unemployed at the end of 1994 were still unemployed two years later. The propensity to find a job is somewhat greater among migrants. However, the positive effect of moving diminishes once other personal characteristics are accounted for. Moreover, when controlling for endogenous migrant selectivity, an insignificant or even negative effect on employment status emerges. This indicates that the relatively better quality of the migrants (e.g. age, education, human capital and unobserved ability), rather than the act of moving itself, causes an improvement in re-employability. Hence, migration alone may not be a very effective mechanism for alleviating individual unemployment. Copyright 2002 by The editors of the Scandinavian Journal of Economics.

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Article provided by Wiley Blackwell in its journal Scandinavian Journal of Economics.

Volume (Year): 104 (2002)
Issue (Month): 4 (December)
Pages: 621-39

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Handle: RePEc:bla:scandj:v:104:y:2002:i:4:p:621-39

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  1. Kauhanen, Merja & Tervo, Hannu, 1999. "Who Move to Depressed Regions? An Analysis of Migration Streams in Finland in the 1990s," ERSA conference papers ersa99pa270, European Regional Science Association.
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Citations

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Cited by:
  1. Abdulbaki Bilgic & Wojciech Florkowski, 2009. "The impact of license regulation on the number of recreation trips: is it worth considering?," Journal of Regulatory Economics, Springer, vol. 35(1), pages 45-69, February.
  2. Hynninen, Sanna-Mari & Longhi, Simonetta, 2009. "Job competition and entry wages of highly educated workers: are there differences between Great Britain and Finland?," ISER Working Paper Series 2009-20, Institute for Social and Economic Research.
  3. Brian Cushing & Jacques Poot, 2003. "Crossing boundaries and borders: Regional science advances in migration modelling," Economics of Governance, Springer, vol. 83(1), pages 317-338, October.
  4. Adolfo Maza, 2006. "Migrations and Regional Convergence: The Case of Spain," Jahrbuch für Regionalwissenschaft, Springer, vol. 26(2), pages 191-202, October.
  5. Petri Böckerman & Mika Haapanen, 2013. "The effect of polytechnic reform on migration," Journal of Population Economics, Springer, vol. 26(2), pages 593-617, April.
  6. Satu Nivalainen, 2004. "Where do migrants go? An analysis of urban and rural destined/originated migration in Finland in 1996-99," ERSA conference papers ersa04p317, European Regional Science Association.
  7. Boman, Anders, 2012. "Employment effects of extended geographic scope in job search," Labour Economics, Elsevier, vol. 19(5), pages 643-652.
  8. Birk, Angela, 2004. "Sequential Migration, and the German Reunification," HWWA Discussion Papers 305, Hamburg Institute of International Economics (HWWA).
  9. Mika Haapanen & Hannu Tervo, 2006. "Migration Behaviour and Duration of Residence Spells of Graduating Students in Finland in 1987-2002," ERSA conference papers ersa06p379, European Regional Science Association.
  10. Petri Böckerman & Mika Haapanen, 2011. "The effect of education on migration: evidence from school reform," ERSA conference papers ersa10p994, European Regional Science Association.
  11. Anders Boman, 2011. "Does migration pay? Earnings effects of geographic mobility following job displacement," Journal of Population Economics, Springer, vol. 24(4), pages 1369-1384, October.
  12. Kari Hämäläinen, 2003. "Education and Unemployment: State Dependence in Unemployment Among Young People in the 1990s," Discussion Papers 312, Government Institute for Economic Research Finland (VATT).
  13. Saikia, Dilip, 2008. "Economic Conditions of the In-Migrant Workers in Kerala: A Case Study in the Trivandrum District," MPRA Paper 28579, University Library of Munich, Germany, revised Jan 2010.
  14. Lehmer, Florian & Ludsteck, Johannes, 2008. "The returns to job mobility and inter-regional migration," IAB Discussion Paper 200806, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
  15. Satu Nivalainen, 2003. "Who move to rural areas? Micro Evidence from Finland," ERSA conference papers ersa03p214, European Regional Science Association.

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