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Regional Unemployment and Job Switches in Germany – An Analysis at District Level

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Author Info
Antje Mertens ()
Anette Haas ()
Abstract

The role of mobility is central to the debate on reducing unemployment. A further question is to what extent a lack of mobility enforces regional disparities. Using a micro data set containing information about two cohorts we analyse the impact of regional unemployment at district level to regional employment duration. As an alternative to the frequently used Logit analysis approach we focus to duration time analyses. We use Cox Regression (Breslow Method for ties) and Piece wise constant models to find out the impact of regional unemployment rate for duration working in a special region. Additionally we could differentiate between voluntary and involuntary mobility. The results of this comparison show a contrary influence of the regional unemployment rate. Our results confirm the lower mobility of woman and that the younger cohort exhibits higher mobility rates. We also compare downward/upward moves (defined as wage losses/gains after mobility) and could not find evidence for influence of regional unemployment rate to wage growth. This yields us to the conclusion that high levels of regional unemployment inhibit mobility because of a lack of vacancies.

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Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa05p592.

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Date of creation: Aug 2005
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Handle: RePEc:wiw:wiwrsa:ersa05p592

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  1. Michael Fertig & Christoph M. Schmidt, 2003. "Mobility within Europe - What Do We (Still Not) Know?," European Economy Group Working Papers 29, European Economy Group. [Downloadable!]
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  2. Lutz Bellmann & Uwe Blien, 2001. "Wage curve analyses of establishment data from western Germany," Industrial and Labor Relations Review, ILR Review, ILR School, Cornell University, vol. 54(4), pages 851-863, July.
  3. David G. Blanchflower & Andrew J. Oswald, 1990. "The Wage Curve," NBER Working Papers 3181, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
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  4. Decressin, Jorg & Fatas, Antonio, 1995. "Regional labor market dynamics in Europe," European Economic Review, Elsevier, vol. 39(9), pages 1627-1655, December. [Downloadable!] (restricted)
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  5. Jennifer Hunt, 2000. "Why Do People Still Live in East Germany?," Discussion Papers of DIW Berlin 201, DIW Berlin, German Institute for Economic Research. [Downloadable!]
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  6. Cameron, Gavin & Muellbauer, John, 1998. "The Housing Market and Regional Commuting and Migration Choices," CEPR Discussion Papers 1945, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
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  7. Pischke, J.S. & Velling, J., 1994. "Wages and Employment Effects of Immigration to Germany: An Analysis Based on Local Labor Markets," Working papers 94-08, Massachusetts Institute of Technology (MIT), Department of Economics.
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  8. Puhani, Patrick A., 1999. "Labour Mobility - An Adjustment Mechanism in Euroland?," IZA Discussion Papers 34, Institute for the Study of Labor (IZA). [Downloadable!]
  9. Pissarides, Christopher A & Wadsworth, Jonathan, 1989. "Unemployment and the Inter-regional Mobility of Labour," Economic Journal, Royal Economic Society, vol. 99(397), pages 739-55, September. [Downloadable!] (restricted)
  10. Topel, Robert H, 1986. "Local Labor Markets," Journal of Political Economy, University of Chicago Press, vol. 94(3), pages S111-43, June. [Downloadable!] (restricted)
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