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Why are Educated and Risk-Loving Persons More Mobile Across Regions

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Author Info

  • Stefan Bauernschuster
  • Oliver Falck
  • Stephan Heblich
  • Jens Suedekum

Abstract

Why are better educated and more risk-friendly persons more mobile across regions? To answer this question, we use micro data on internal migrants from the German Socio-Economic Panel (SOEP) 2000–2006 and merge this information with a unique proxy for region-pair-specific cultural distances across German regions constructed from historical local dialect patterns. Our findings indicate that risk-loving and skilled people are more mobile over longer distances because they are more willing to cross cultural boundaries and move to regions that are culturally different from their homes. Other types of distance-related migration costs cannot explain the lower distance sensitivity of educated and risk-loving individuals.

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Bibliographic Info

Paper provided by CESifo Group Munich in its series CESifo Working Paper Series with number 3938.

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Date of creation: 2012
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Handle: RePEc:ces:ceswps:_3938

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Keywords: migration; culture; distance; human capital; risk attitudes;

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References

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  1. David A. Jaeger & Holger Bonin & Thomas Dohmen & Armin Falk & David Huffman & Uwe Sunde, 2007. "Direct Evidence on Risk Attitudes and Migration," CReAM Discussion Paper Series 0703, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  2. repec:hal:journl:halshs-00641280 is not listed on IDEAS
  3. Jacques Melitz, 2003. "Language and Foreign Trade," Working Papers 2003-26, Centre de Recherche en Economie et Statistique.
  4. Felbermayr, Gabriel & Toubal, Farid, 2006. "Cultural proximity and trade," Tübinger Diskussionsbeiträge 305, University of Tübingen, School of Business and Economics.
  5. Falck, Oliver & Heblich, Stephan & Lameli, Alfred & Südekum, Jens, 2012. "Dialects, cultural identity, and economic exchange," Journal of Urban Economics, Elsevier, vol. 72(2), pages 225-239.
  6. Jeffrey Grogger, 2011. "Speech Patterns and Racial Wage Inequality," Journal of Human Resources, University of Wisconsin Press, vol. 46(1), pages 1-25.
  7. Luigi Guiso & Paola Sapienza & Luigi Zingales, 2004. "Cultural Biases in Economic Exchange," NBER Working Papers 11005, National Bureau of Economic Research, Inc.
  8. Stephen Machin & Panu Pelkonen & Kjell Salvanes, 2008. "Education and mobility," LSE Research Online Documents on Economics 28277, London School of Economics and Political Science, LSE Library.
  9. Gordon Dahl, 1997. "Mobility and the Returns to Education: Testing A Roy Model With Multiple Markets," Working Papers 760, Princeton University, Department of Economics, Industrial Relations Section..
  10. Jennifer Hunt, 2004. "Are Migrants More Skilled than Non-Migrants? Repeat, Return and Same-Employer Migrants," NBER Working Papers 10633, National Bureau of Economic Research, Inc.
  11. Victor Ginsburgh & Shlomo Weber, 2011. "How many languages do we need? The economics of Linguistic Diversity," ULB Institutional Repository 2013/152424, ULB -- Universite Libre de Bruxelles.
  12. Edward L. Glaeser & David C. Mare, 1994. "Cities and Skills," NBER Working Papers 4728, National Bureau of Economic Research, Inc.
  13. Stelios Michalopoulos, 2009. "The Origins of Ethnolinguistic Diversity," Carlo Alberto Notebooks 110, Collegio Carlo Alberto.
  14. Ofer Malamud & Abigail Wozniak, 2012. "The Impact of College on Migration: Evidence from the Vietnam Generation," Journal of Human Resources, University of Wisconsin Press, vol. 47(4), pages 913-950.
  15. Molloy, Raven & Smith, Christopher L. & Wozniak, Abigail, 2011. "Internal Migration in the United States," IZA Discussion Papers 5903, Institute for the Study of Labor (IZA).
  16. Peri, Giovanni, 2002. "Young workers, learning, and agglomerations," Journal of Urban Economics, Elsevier, vol. 52(3), pages 582-607, November.
  17. Schwartz, Aba, 1973. "Interpreting the Effect of Distance on Migration," Journal of Political Economy, University of Chicago Press, vol. 81(5), pages 1153-69, Sept.-Oct.
  18. Guido Tabellini, 2008. "Presidential Address Institutions and Culture," Journal of the European Economic Association, MIT Press, vol. 6(2-3), pages 255-294, 04-05.
  19. Gert G. Wagner & Joachim R. Frick & Jürgen Schupp, 2007. "The German Socio-Economic Panel Study (SOEP): Scope, Evolution and Enhancements," SOEPpapers on Multidisciplinary Panel Data Research 1, DIW Berlin, The German Socio-Economic Panel (SOEP).
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Cited by:
  1. Stefan Bauernschuster & Oliver Falck, 2014. "Culture, Spatial Diffusion of Ideas and their Long-Lasting Imprints - Evidence from Froebel's Kindergarten Movement," CESifo Working Paper Series 4749, CESifo Group Munich.
  2. Nina Neubecker, 2013. "Low Occupational Prestige and Internal Migration in Germany," SOEPpapers on Multidisciplinary Panel Data Research 562, DIW Berlin, The German Socio-Economic Panel (SOEP).

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