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Why do not They Move from Rural to Urban Areas? Inter-Regional Migration in Romania

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  • Silaghi, Monica Ioana

    ()
    (Babes-Bolyai University, Cluj-Napoca, Romania)

  • Ghatak, Subrata

    (Kingston University, London, UK)

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    Abstract

    This paper examines the role of wages and unemployment rates as major potential economic causes of internal migration between the separate regions of Romania in the period 1995-2005. The different inter-regional migration routes are treated as cross-section units in a panel data structure, with unobserved characteristics for each route modelled as fixed effects. The cross-section SUR (seemingly unrelated regressions) estimation indicates that wage in origin regions had a significant influence on internal migration flows, but unemployment rates in origin and destination regions have apparently played no part. When time is accounted for, results show that wages in destination regions become very significant and migration is explained by pull rather than push effects.

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    Bibliographic Info

    Article provided by Institute for Economic Forecasting in its journal Romanian Journal for Economic Forecasting.

    Volume (Year): (2011)
    Issue (Month): 1 (March)
    Pages: 143-158

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    Handle: RePEc:rjr:romjef:v::y:2011:i:1:p:143-158

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    Related research

    Keywords: regional migration; Harris-Todaro model; transition economies; Romania; SUR estimation;

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    1. Andrienko, Yuri & Guriev, Sergei, 2003. "Determinants of Interregional Mobility in Russia: Evidence from Panel Data," CEPR Discussion Papers 3835, C.E.P.R. Discussion Papers.
    2. Stark, Oded & Ranjan Gupta, Manash & Levhari, David, 1991. "Equilibrium urban unemployment in developing countries : Is migration the culprit?," Economics Letters, Elsevier, vol. 37(4), pages 477-482, December.
    3. Paul Levine, 1999. "The welfare economics of immigration control," Journal of Population Economics, Springer, vol. 12(1), pages 23-43.
    4. Subrata Ghatak & Alan Mulhern & Chris Stewart, 2005. "Regional Development of Small Firms in Poland," Economic Change and Restructuring, Springer, vol. 38(2), pages 129-146, June.
    5. Stephen Wheatley Price, . "The Employment Adjustment of Male Immigrants in England," Discussion Papers in Public Sector Economics 98/9, Department of Economics, University of Leicester.
    6. Taylor, J. Edward & Martin, Philip L., 2001. "Human capital: Migration and rural population change," Handbook of Agricultural Economics, in: B. L. Gardner & G. C. Rausser (ed.), Handbook of Agricultural Economics, edition 1, volume 1, chapter 9, pages 457-511 Elsevier.
    7. Peter Huber, 2004. "Inter-regional Mobility in Europe. A Note on the Cross-Country Evidence," WIFO Working Papers 221, WIFO.
    8. Hazans, Mihails, 2003. "Commuting in the Baltic States: Patterns, determinants and gains," ZEI Working Papers B 02-2003, ZEI - Center for European Integration Studies, University of Bonn.
    9. Fidrmuc, Jan, 2004. "Migration and regional adjustment to asymmetric shocks in transition economies," Journal of Comparative Economics, Elsevier, vol. 32(2), pages 230-247, June.
    10. Deichmann, Uwe & Henderson, Vernon, 2000. "Urban and regional dynamics in Poland," Policy Research Working Paper Series 2457, The World Bank.
    11. Hamilton, Bob & Whalley, John, 1984. "Efficiency and distributional implications of global restrictions on labour mobility : Calculations and policy implications," Journal of Development Economics, Elsevier, vol. 14(1), pages 61-75.
    12. Brecher, Richard A. & Choudhri, Ehsan U., 1987. "International migration versus foreign investment in the presence of unemployment," Journal of International Economics, Elsevier, vol. 23(3-4), pages 329-342, November.
    13. Harris, John R & Todaro, Michael P, 1970. "Migration, Unemployment & Development: A Two-Sector Analysis," American Economic Review, American Economic Association, vol. 60(1), pages 126-42, March.
    14. Ghatak, Subrata & Levine, Paul & Price, Stephen Wheatley, 1996. " Migration Theories and Evidence: An Assessment," Journal of Economic Surveys, Wiley Blackwell, vol. 10(2), pages 159-98, June.
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