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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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Bibliographic Info

Article provided by Taylor & Francis Journals in its journal International Review of Applied Economics.

Volume (Year): 14 (2000)
Issue (Month): 3 ()
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. DaVanzo, Julie, 1978. "Does Unemployment Affect Migration?-Evidence from Micro Data," The Review of Economics and Statistics, MIT Press, vol. 60(4), pages 504-14, November.
  2. 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.
  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. 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.
  5. 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.
  6. 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.
  7. Greenwood, Michael J, et al, 1991. "New Directions in Migration Research: Perspectives from Some North American Regional Science Disciplines," The Annals of Regional Science, Springer, vol. 25(4), pages 237-70.
  8. Olivier Jean Blanchard & Lawrence F. Katz, 1992. "Regional Evolutions," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 23(1), pages 1-76.
  9. 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.
  10. 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.
  11. Hannu Tervo, 1998. "Post-migratory employment prospect: Evidence from Finland," ERSA conference papers ersa98p41, European Regional Science Association.
  12. Jaakko Pehkonen & Hannu Tervo, 1998. "Persistence and Turnover in Regional Unemployment Disparities," Regional Studies, Taylor & Francis Journals, vol. 32(5), pages 445-458.
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Cited by:
  1. Ioannis Kaplanis & Vassilis Monastiriotis, 2012. "Flexible Employment and Cross-Regional Adjustment," SERC Discussion Papers 0100, Spatial Economics Research Centre, LSE.
  2. Sari Pekkala, 2002. "Unemployment and Migration: Does Moving Help?," Discussion Papers 281, Government Institute for Economic Research Finland (VATT).
  3. Mika Haapanen, 1998. "Internal Migration and Labour Market Transitions of Unemployment Workers," Discussion Papers 179, Government Institute for Economic Research Finland (VATT).

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