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Migration and Labour Market Adjustment: Empirical evidence from Finland 1985-90

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  • Hannu Tervo

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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  • Hannu Tervo, 2000. "Migration and Labour Market Adjustment: Empirical evidence from Finland 1985-90," International Review of Applied Economics, Taylor & Francis Journals, vol. 14(3), pages 343-360.
    • Handle: RePEc:taf:irapec:v:14:y:2000:i:3:p:343-360
    DOI: 10.1080/02692170050084079
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    2. Ubarevi?ien?, R?ta & van Ham, Maarten, 2016. "Population Decline in Lithuania: Who Lives in Declining Regions and Who Leaves?," IZA Discussion Papers 10160, Institute of Labor Economics (IZA).
    3. Sari Pekkala & Hannu Tervo, 2002. "Unemployment and Migration: Does Moving Help?," Scandinavian Journal of Economics, Wiley Blackwell, vol. 104(4), pages 621-639, December.
    4. Merja Kauhanen & Hannu Tervo, 2002. "Who Moves to Depressed Regions? An Analysis of Migration Streams in Finland in the 1990s," International Regional Science Review, , vol. 25(2), pages 200-218, April.
    5. Monastiriotis, Vassilis & Kaplanis, Ioannis, 2011. "Flexible employment and cross- regional adjustment," Working Papers 2072/179671, Universitat Rovira i Virgili, Department of Economics.
    6. Peter Berck & Sofia Tano & Olle Westerlund, 2016. "Regional Sorting of Human Capital: The Choice of Location among Young Adults in Sweden," Regional Studies, Taylor & Francis Journals, vol. 50(5), pages 757-770, May.
    7. N. Groenewold & A.J. Hagger, 2008. "Regional Unemployment Disparities: An Evaluation Of Policy Measures," Australian Economic Papers, Wiley Blackwell, vol. 47(4), pages 355-375, December.
    8. Vassilis Monastiriotis & Stylianos Sakkas, 2021. "Employment mobility and labour market flexibility in the EU," JRC Working Papers on Territorial Modelling and Analysis 2021-01, Joint Research Centre.
    9. Mika Haapanen & Hannu Tervo, 2012. "Migration Of The Highly Educated: Evidence From Residence Spells Of University Graduates," Journal of Regional Science, Wiley Blackwell, vol. 52(4), pages 587-605, October.
    10. Martin Abraham & Katrin Auspurg & Sebastian Bähr & Corinna Frodermann & Stefanie Gundert & Thomas Hinz, 2013. "Unemployment and willingness to accept job offers: results of a factorial survey experiment [Arbeitslosigkeit und Stellenannahmebereitschaft: Erste Ergebnisse eines Faktoriellen Survey Moduls]," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 46(4), pages 283-305, December.
    11. Nicolaas Groenewold & A.J. Hagger, 2004. "Regional Unemployment Disparities: Can Fiscal Policy Help?," Australian Journal of Labour Economics (AJLE), Bankwest Curtin Economics Centre (BCEC), Curtin Business School, vol. 7(1), pages 13-37, March.
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    13. Xavier Albacete & Joan Tort, 2017. "Reshaping local borders in Europe today. A critical reflection founded on an analysis of the case of Finland," Miscellanea Geographica. Regional Studies on Development, Sciendo, vol. 21(1), pages 19-24, March.

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