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Commuting in the Baltic States: Patterns, determinants and gains

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  • Hazans, Mihails

Abstract

To what extent does commuting reduce urban – rural and regional wage disparities? This question is addressed by estimating two sets of earnings functions (based on 2000 LFS data for Estonia, Latvia and Lithuania): with location variables (like capital city, rural etc.) measured at the workplace and at the place of residence. The main finding is that in Estonia and Latvia commuting has significantly narrowed the ceteris paribus wage gap between capital city and rural areas, as well as between capital and other cities. In Lithuania only residents of urban areas in the capital county manage to catch up significantly with the capital, while overall urban-rural gap remains almost unchanged. So different outcomes are explained by country-specific skills composition of rural – urban commuting flows and wage discrimination against rural residents in Lithuanian urban markets. Individual gains to rural – urban or inter-city commuting (both with and without correcting to selectivity) are uniformly big in Latvia but on average negligible in Lithuanian urban areas. --

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Bibliographic Info

Paper provided by ZEI - Center for European Integration Studies, University of Bonn in its series ZEI Working Papers with number B 02-2003.

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Date of creation: 2003
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Handle: RePEc:zbw:zeiwps:b022003

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Related research

Keywords: commuting; earnings functions; treatment effects model; wage disparities; Baltic States; ethnic minority;

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References

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Citations

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Cited by:
  1. Peter Huber, 2011. "Educational Attainment and Education-job Mismatch of Cross-border Commuters in the EU," WIFO Working Papers, WIFO 388, WIFO.
  2. Napolitano, Oreste & Bonasia, Mariangela, 2010. "Determinants of different internal migration trends: the Italian experience," MPRA Paper 21734, University Library of Munich, Germany.
  3. Anna Zasova & Aleksejs Melihovs, 2005. "Assessment of Labour Market Elasticity in Latvia," Working Papers, Latvijas Banka 2005/03, Latvijas Banka.
  4. Hazans, Mihails, 2003. "Determinants of inter-regional migration in the Baltic countries," ZEI Working Papers B 17-2003, ZEI - Center for European Integration Studies, University of Bonn.
  5. Hazans, Mihails, 2005. "Unemployment and the earnings structure in Latvia," Policy Research Working Paper Series 3504, The World Bank.
  6. Silaghi, Monica Ioana & Ghatak, Subrata, 2011. "Why do not They Move from Rural to Urban Areas? Inter-Regional Migration in Romania," Journal for Economic Forecasting, Institute for Economic Forecasting, Institute for Economic Forecasting, vol. 0(1), pages 143-158, March.
  7. Giovanni Russo & Peter Nijkamp & Aura Reggiani & Federico Tedeschi, 2011. "Commuters' effect on local labour markets: A german case study," ERSA conference papers ersa10p1376, European Regional Science Association.
  8. World Bank, 2012. "In Search of Opportunities : How a More Mobile Workforce Can Propel Ukraine’s Prosperity (Vol. 2 of 2) : Technical Report," World Bank Other Operational Studies 12287, The World Bank.
  9. Mihails Hazans, 2003. "Potential emigration of Latvian labour force after joining the EU and its impact on Latvian labour market," SSE Riga/BICEPS Research Papers, Baltic International Centre for Economic Policy Studies (BICEPS) and Stockholm School of Economics in Riga (SSE Riga) 2003-2, Baltic International Centre for Economic Policy Studies (BICEPS) and Stockholm School of Economics in Riga (SSE Riga).
  10. Giovanni Russo & Federico Tedeschi & Aura Reggiani & Peter Nijkamp, 2014. "Commuter Effects on Local Labour Markets: A German Modelling Study," Urban Studies, Urban Studies Journal Limited, Urban Studies Journal Limited, vol. 51(3), pages 493-508, February.
  11. Engelbert Theurl & Georg Gottholmseder, 2006. "Nicht-PendlerInnen, Binnen- und GrenzpendlerInnen - Eine sozio-ökonomische Charakterisierung am Beispiel der Pendlerregion Bodenseeraum," Wirtschaft und Gesellschaft - WuG, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik, Kammer für Arbeiter und Angestellte für Wien, Abteilung Wirtschaftswissenschaft und Statistik, vol. 32(2), pages 209-244.

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