Human Capital Mobility and Convergence – A Spatial Dynamic Panel Model of the German Regions
AbstractSince the fall of the iron curtain in 1989, the migration deficit of the Eastern part of Germany has accumulated to 1.8 million people, which is over ten percent of its initial population. Depending on their human capital endowment, these migrants might either â in the case of low-skilled migration â accelerate or â in high-skilled case â impede convergence. Due to the availability of detailed data on regional human capital, migration and productivity growth, we are able to test how geographic mobility affects convergence via the human capital selectivity of migration. With regard to the endogeneity of the migration flows and human capital, we apply a dynamic panel data model within the framework of β-convergence and account for spatial dependence. The regressions indicate a positive, robust, but modest effect of a migration surplus on regional productivity growth. After controlling for human capital, the effect of migration decreases; this decrease indicates that skill selectivity is one way that migration impacts growth.
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Bibliographic InfoPaper provided by Halle Institute for Economic Research in its series IWH Discussion Papers with number 9.
Date of creation: Oct 2012
Date of revision:
human capital mobility; regional growth; spatial panel models;
Other versions of this item:
- Kubis, Alexander & Schneider, Lutz, 2012. "Human capital mobility and convergence : a spatial dynamic panel model of the German regions," IAB Discussion Paper 201223, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
- R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
- R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
- C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-10-27 (All new papers)
- NEP-EUR-2012-10-27 (Microeconomic European Issues)
- NEP-GEO-2012-10-27 (Economic Geography)
- NEP-MIG-2012-10-27 (Economics of Human Migration)
- NEP-URE-2012-10-27 (Urban & Real Estate Economics)
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