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Unemployment and Migration: Does Moving Help?

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Author Info
 Pekkala, Sari
Tervo, Hannu

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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 Blackwell Publishing 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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References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
  1. Mincer, Jacob, 1978. "Family Migration Decisions," Journal of Political Economy, University of Chicago Press, vol. 86(5), pages 749-73, October. [Downloadable!] (restricted)
  2. Sari Pekkala & Aki Kangasharju, 2002. "Regional Labour Market Adjustment: Are Positive and Negative Shocks Different?," LABOUR, CEIS, Fondazione Giacomo Brodolini and Blackwell Publishing Ltd, vol. 16(2), pages 267-286, 06. [Downloadable!] (restricted)
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  3. Hannu Tervo, 2001. "Does the compositional effect explain the association between rates of in-migration and out-migration?," ERSA conference papers ersa01p68, European Regional Science Association. [Downloadable!]
  4. Schlottmann, Alan M & Herzog, Henry W, Jr, 1981. "Employment Status and the Decision to Migrate," The Review of Economics and Statistics, MIT Press, vol. 63(4), pages 590-98, November. [Downloadable!] (restricted)
  5. Faini, Riccardo & Galli, Giampaolo & Gennari, Pietro & Rossi, Fulvio, 1997. "An empirical puzzle: Falling migration and growing unemployment differentials among Italian regions," European Economic Review, Elsevier, vol. 41(3-5), pages 571-579, April. [Downloadable!] (restricted)
  6. Heckman, James J, 1979. "Sample Selection Bias as a Specification Error," Econometrica, Econometric Society, vol. 47(1), pages 153-61, January. [Downloadable!] (restricted)
  7. Graves, Philip E. & Linneman, Peter D., 1979. "Household migration: Theoretical and empirical results," Journal of Urban Economics, Elsevier, vol. 6(3), pages 383-404, July. [Downloadable!] (restricted)
  8. Decressin, Jörg & Fatás, Antonio, 1994. "Regional Labour Market Dynamics in Europe," CEPR Discussion Papers 1085, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  9. Topel, Robert, 1993. "What Have We Learned from Empirical Studies of Unemployment and Turnover?," American Economic Review, American Economic Association, vol. 83(2), pages 110-15, May. [Downloadable!] (restricted)
  10. David Plane, 1993. "Demographic Influences on Migration," Regional Studies, Taylor and Francis Journals, vol. 27(4), pages 375-383, January. [Downloadable!] (restricted)
  11. McCormick, Barry, 1997. "Regional unemployment and labour mobility in the UK," European Economic Review, Elsevier, vol. 41(3-5), pages 581-589, April. [Downloadable!] (restricted)
  12. Ahn, Namkee & de la Rica, Sara & Ugidos, Arantza, 1999. "Willingness to Move for Work and Unemployment Duration in Spain," Economica, London School of Economics and Political Science, vol. 66(263), pages 335-57, August. [Downloadable!] (restricted)
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  13. Antolin, Pablo & Bover, Olympia, 1997. "Regional Migration in Spain: The Effect of Personal Characteristics and of Unemployment, Wage and House Price Differentials Using Pooled Cross-Sections," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 59(2), pages 215-35, May.
  14. Molho, Ian, 1986. "Theories of Migration: A Review," Scottish Journal of Political Economy, Scottish Economic Society, vol. 33(4), pages 396-419, November.
  15. Henry Herzog & Alan Schlottmann & Thomas Boehm, 1993. "Migration as Spatial Job--search: A Survey of Empirical Findings," Regional Studies, Taylor and Francis Journals, vol. 27(4), pages 327-340, January. [Downloadable!] (restricted)
  16. Greenwood, Michael J, 1975. "Research on Internal Migration in the United States: A Survey," Journal of Economic Literature, American Economic Association, vol. 13(2), pages 397-433, June. [Downloadable!] (restricted)
  17. Sandell, Steven H, 1977. "Women and the Economics of Family Migration," The Review of Economics and Statistics, MIT Press, vol. 59(4), pages 406-14, November. [Downloadable!] (restricted)
Full references

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. 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. [Downloadable!]
  2. 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. [Downloadable!]
  3. Satu Nivalainen, 2003. "Who move to rural areas? Micro Evidence from Finland," ERSA conference papers ersa03p214, European Regional Science Association. [Downloadable!]
  4. 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]. [Downloadable!]
  5. Kari Hämäläinen, 2003. "Education and Unemployment: State Dependence in Unemployment Among Young People in the 1990s," VATT Discussion Papers 312, Government Institute for Economic Research (VATT). [Downloadable!]
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