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Selective migration, union wage setting and unemployment disparities in West Germany

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Author Info

  • Jens Suedekum

Abstract

There are wide and persistent disparities between regional unemployment rates in West Germany. Furthermore, regions with high unemployment tend to have relatively low effective wages and vice versa. Internal migration is driven by these spatial disparities. However, mobility will not work as an adjustment mechanism, but rather perpetuate regional imbalances if there is a skill bias within the group of internal migrants. JEL Classification: J6, R11

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File URL: http://www.tandfonline.com/doi/abs/10.1080/1351161042000180629
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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal International Economic Journal.

Volume (Year): 18 (2004)
Issue (Month): 1 ()
Pages: 33-48

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Handle: RePEc:taf:intecj:v:18:y:2004:i:1:p:33-48

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Related research

Keywords: Regional unemployment; internal migration; collective bargaining;

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References

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  1. Burda, Michael C & Wyplosz, Charles, 1991. "Human Capital, Investment and Migration in an Integrated Europe," CEPR Discussion Papers 614, C.E.P.R. Discussion Papers.
  2. Robert E. Hall, 1970. "Why Is the Unemployment Rate So High at Full Employment?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 1(3), pages 369-410.
  3. Borjas, George J. & Bronars, Stephen G. & Trejo, Stephen J., 1992. "Self-selection and internal migration in the United States," Journal of Urban Economics, Elsevier, vol. 32(2), pages 159-185, September.
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Citations

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Cited by:
  1. Jens Suedekum, 2003. "Increasing Returns and Spatial Unemployment Disparities," ERSA conference papers ersa03p44, European Regional Science Association.
  2. Monastiriotis, Vassilis & Kaplanis, Ioannis, 2011. "Flexible employment and cross- regional adjustment," Working Papers 2072/179671, Universitat Rovira i Virgili, Department of Economics.
  3. Suedekum, Jens & Blien, Uwe, 2004. "Wages and Employment Growth: Disaggregated Evidence for West Germany," IZA Discussion Papers 1128, Institute for the Study of Labor (IZA).
  4. Buch, Tanja & Hamann, Silke & Meier, Henning & Niebuhr, Annekatrin & Peters, Cornelius & Puckelwald, Johannes, 2011. "Analyse der Berücksichtigung eines Wanderungsindikators im Rahmen der Abgrenzung des GRW-Fördergebiets : Gutachten für die Gemeinschaftsaufgabe "Verbesserung der regionalen Wirtschaftsstruktur," IAB-Forschungsbericht 201104, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].

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