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Migration and Labour Market Adjustment: empirical evidence from Finland 1985–90

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Author Info
Hannu Tervo

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Abstract

This paper addresses the question of the role of migration as an adjustment process by analysing the relationship between unemployment and labour force mobility. The empirical analysis deals with long-distance migration in Finland in the period 1985-90. When considered within a multivariate setting in which personal and place characteristics are held constant, the results show that higher origin unemployment rates increase outmigration, but not particularly for unemployed workers. Three outcomes are deduced from the results. First, the equilibrating process of interregional migration is slow-although working in the right direction-and becomes steadily slower as regional unemployment differentials fall. Secondly, the size of high-unemployment regions, as measured in terms of the labour force, decreases during the adjustment process as employed persons also leave the region. Thirdly, high-unemployment regions in particular lose their young and educated workers. The danger of the process of cumulative causation is great in these regions.

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Publisher Info
Article provided by Taylor and Francis Journals in its journal International Review of Applied Economics.

Volume (Year): 14 (2000)
Issue (Month): 3 (July)
Pages: 343-360
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Handle: RePEc:taf:irapec:v:14:y:2000:i:3:p:343-360

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  1. Hannu Tervo, 2000. "Post-Migratory Employment Prospects: Evidence from Finland," LABOUR, CEIS, Fondazione Giacomo Brodolini and Blackwell Publishing Ltd, vol. 14(2), pages 331-350, 06. [Downloadable!] (restricted)
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  2. Marston, Stephen T, 1985. "Two Views of the Geographic Distribution of Unemployment," The Quarterly Journal of Economics, MIT Press, vol. 100(1), pages 57-79, February. [Downloadable!] (restricted)
  3. 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.
  4. Jaakko Pehkonen, Hannu Tervo, 1998. "Persistence and Turnover in Regional Unemployment Disparities," Regional Studies, Taylor and Francis Journals, vol. 32(5), pages 445-458, July. [Downloadable!] (restricted)
  5. Oswald Andrew J., 1996. "A Conjecture on the Explanation for High Unemployment in the Industrialized Nations : Part I," The Warwick Economics Research Paper Series (TWERPS) 475, University of Warwick, Department of Economics. [Downloadable!]
  6. 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)
  7. Jackman, Richard & Savouri, Savvas, 1992. "Regional Migration in Britain: An Analysis of Gross Flows Using NHS Central Register Data," Economic Journal, Royal Economic Society, vol. 102(415), pages 1433-50, November. [Downloadable!] (restricted)
  8. Pissarides, Christopher A & Wadsworth, Jonathan, 1989. "Unemployment and the Inter-regional Mobility of Labour," Economic Journal, Royal Economic Society, vol. 99(397), pages 739-55, September. [Downloadable!] (restricted)
  9. DaVanzo, Julie, 1983. "Repeat Migration in the United States: Who Moves Back and Who Moves On?," The Review of Economics and Statistics, MIT Press, vol. 65(4), pages 552-59, November. [Downloadable!] (restricted)
  10. Gary Hunt, 1993. "Equilibrium and Disequilibrium in Migration Modelling," Regional Studies, Taylor and Francis Journals, vol. 27(4), pages 341-349, January. [Downloadable!] (restricted)
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