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Education, unemployment and migration Author info | Abstract | Publisher info | Download info | Related research | Statistics Wolfgang Eggert () (University of Paderborn & CESifo)
Tim Krieger () (University of Paderborn)
Volker Meier () (Ifo Institute for Economic Research, University of Munich & CESifo)
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registered author(s):
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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Paper provided by University of Paderborn, CIE Center for International Economics in its series Working Papers with number
7.
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Length: 30 pages
Date of creation: Oct 2007Date of revision:
Handle: RePEc:pdn:wpaper:7Contact details of provider: Web page: http://www.uni-paderborn.de/fakultaeten/wiwi/department4/cie/ More information through EDIRC
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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
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