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Education, Unemployment and Migration

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Author Info
Wolfgang Eggert ()
Tim Krieger ()
Volker Meier ()

Additional information is available for the following registered author(s):

Abstract

This paper studies a two-region model in which unemployment, education decisions and interregional migration are endogenous. The poorer region exhibits both lower wages and higher unemployment rates, and migrants to the richer region are disproportionally skilled. The brain drain from the poor to the rich region is accompanied by stronger incentives to acquire skills even for immobile workers. Regional shocks tend to affect both regions in a symmetric fashion, and skilled-biased technological change reduces wages of the unskilled. Both education and migration decisions are distorted by a uniform unemployment compensation, which justifies a corrective subsidization.

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Publisher Info
Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number CESifo Working Paper No. 2119.

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Date of creation: 2007
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Handle: RePEc:ces:ceswps:_2119

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Related research
Keywords: education; unemployment; interregional migration; externalities; brain drain;

Other versions of this item:

Find related papers by JEL classification:
H23 - Public Economics - - Taxation, Subsidies, and Revenue - - - Externalities; Redistributive Effects; Environmental Taxes and Subsidies
I20 - Health, Education, and Welfare - - Education - - - General
J61 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Geographic Labor Mobility; Immigrant Workers
J64 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment: Models, Duration, Incidence, and Job Search
R10 - Urban, Rural, and Regional Economics - - General Regional Economics - - - General

References listed on IDEAS
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    Other versions:
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    Other versions:
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    Other versions:
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