Why Are East Germans Not More Mobile?: Analyzing the Impact of Local Networks on Migration Intentions
AbstractDespite poor regional labour market conditions East Germans exhibit a rather limited willing-ness of leaving their home region. Applying an IV ordered probit approach and using the German Socio Economic Panel (SOEP), we test a local network explanation of lower spatial mobility. Firstly, we find that membership in locally bounded social networks reduces regional mobility. Secondly, we show that native East Germans are more invested in this type of social networks than West Germans. Thirdly, after controlling for the social network effect the mobility gap between East and West substantially reduces. Thus, low regional labour mobility of East Germans is for a significant part attributable to local ties binding people to their home region.
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Bibliographic InfoPaper provided by DIW Berlin, The German Socio-Economic Panel (SOEP) in its series SOEPpapers on Multidisciplinary Panel Data Research with number 334.
Length: 26 p.
Date of creation: 2010
Date of revision:
Social networks; labour mobility;
Find related papers by JEL classification:
- Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Social and Economic Stratification
- R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
- J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
This paper has been announced in the following NEP Reports:
- NEP-ALL-2010-11-27 (All new papers)
- NEP-GEO-2010-11-27 (Economic Geography)
- NEP-LTV-2010-11-27 (Unemployment, Inequality & Poverty)
- NEP-MIG-2010-11-27 (Economics of Human Migration)
- NEP-SOC-2010-11-27 (Social Norms & Social Capital)
- NEP-URE-2010-11-27 (Urban & Real Estate Economics)
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