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The Geographical Mobility of Unemployed Workers : Evidence from West Germany

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Author Info
Arntz, Melanie

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Abstract

Using a competing-risk framework of exiting unemployment to jobs in a local or a distant labor market area, this paper investigates whether unemployed individuals in West Germany choose search strategies that favor migrating out of declining regions. Moreover, the paper investigates how such search strategies are affected by the local accommodation of labor market programs. Such programs have been suggested to lead to a regional locking-in effect. Empirical results are obtained from a stratified Cox partial likelihood proportional hazards model that allows for location-specific fixed effects and are compared to estimates from a parametric log-logistic hazard model that takes account of unobserved individual heterogeneity. The findings indicate that unemployed in West Germany are responsive to local labor market conditions and are more likely to leave regions with unfavorable re-employment opportunities. No locking-in effect from labor market programs is found. The probability of migration is found to increase with search time. --

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Publisher Info
Paper provided by ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research in its series ZEW Discussion Papers with number 05-34.

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Date of creation: 2005
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Handle: RePEc:zbw:zewdip:3188

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Related research
Keywords: interregional mobility; unemployment duration; competing-risk; active labor market policy; unobserved location-specific heterogeneity;

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Find related papers by JEL classification:
R23 - Urban, Rural, and Regional Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
J64 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment: Models, Duration, Incidence, and Job Search
J62 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Job, Occupational and Intergenerational Mobility; Promotion

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:

  1. Barry Eichengreen, 1991. "Is Europe an Optimum Currency Area?," NBER Working Papers 3579, National Bureau of Economic Research, Inc. [Downloadable!] (restricted)
    Other versions:
  2. McCall, B P & McCall, J J, 1987. "A Sequential Study of Migration and Job Search," Journal of Labor Economics, University of Chicago Press, vol. 5(4), pages 452-76, October. [Downloadable!] (restricted)
  3. Olle Westerlund, 1998. "Internal Migration in Sweden: The Effects of Mobility Grants and Regional Labour Market Conditions," LABOUR, CEIS, Fondazione Giacomo Brodolini and Blackwell Publishing Ltd, vol. 12(2), pages 363-388, 07. [Downloadable!] (restricted)
  4. Lee, Sokbae & Wilke, Ralf A., 2005. "Reform of Unemployment Compensation in Germany : A Nonparametric Bounds Analysis Using Register Data," ZEW Discussion Papers 05-29, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
    Other versions:
  5. Arntz, Melanie & Wilke, Ralf A., 2005. "Map Intersection Based Merging Schemes for Administrative Data Sources and an Application to Germany," ZEW Discussion Papers 05-20, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
  6. Decressin, Jorg & Fatas, Antonio, 1995. "Regional labor market dynamics in Europe," European Economic Review, Elsevier, vol. 39(9), pages 1627-1655, December. [Downloadable!] (restricted)
    Other versions:
  7. Olivier Jean Blanchard & Lawrence F. Katz, 1992. "Regional Evolutions," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 23(1992-1), pages 1-76. [Downloadable!]
  8. Salop, S C, 1973. "Systematic Job Search and Unemployment," Review of Economic Studies, Blackwell Publishing, vol. 40(2), pages 191-201, April. [Downloadable!] (restricted)
  9. Hujer, Reinhard & Caliendo, Marco & Zeiss, Christopher & Blien, Uwe, 2002. "Macroeconometric evaluation of active labour market policies in Germany - a dynamic panel approach using regional data," ERSA conference papers ersa02p225, European Regional Science Association. [Downloadable!]
    Other versions:
  10. Puhani, Patrick A., 1999. "Labour Mobility - An Adjustment Mechanism in Euroland?," IZA Discussion Papers 34, Institute for the Study of Labor (IZA). [Downloadable!]
  11. Widerstedt, Barbro, 1998. "Moving or Staying? Job Mobility as a Sorting Process," UmeÃ¥ Economic Studies 464, Umeå University, Department of Economics. [Downloadable!]
  12. Moulton, Brent R, 1990. "An Illustration of a Pitfall in Estimating the Effects of Aggregate Variables on Micro Unit," The Review of Economics and Statistics, MIT Press, vol. 72(2), pages 334-38, May. [Downloadable!] (restricted)
  13. Lüdemann, Elke & Wilke, Ralf A. & Zhang, Xuan, 2004. "Censored Quantile Regressions and the Length of Unemployment Periods in West Germany," ZEW Discussion Papers 04-57, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
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  14. Damm, Anna Piil & Rosholm, Michael, 2003. "Employment Effects of Dispersal Policies on Refugee Immigrants, Part I: Theory," IZA Discussion Papers 924, Institute for the Study of Labor (IZA). [Downloadable!]
  15. Bruce K. Fallick, 1988. "Job Search in More Than One Labor Market," UCLA Economics Working Papers 495, UCLA Department of Economics. [Downloadable!]
  16. Kettunen, Juha, 2002. "Labour mobility of unemployed workers," Regional Science and Urban Economics, Elsevier, vol. 32(3), pages 359-380, May. [Downloadable!] (restricted)
  17. Molho, Ian, 1986. "Theories of Migration: A Review," Scottish Journal of Political Economy, Scottish Economic Society, vol. 33(4), pages 396-419, November.
  18. Fredriksson, Peter, 1999. "The Dynamics of Regional Labor Markets and Active Labor Market Policy: Swedish Evidence," Oxford Economic Papers, Oxford University Press, vol. 51(4), pages 623-48, October.
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  19. Lindgren, Urban & Westerlund, Olle, 2003. "Labour market programmes and geographical mobility: migration and commuting among programme participants and openly unemployed," Working Paper Series 2003:6, IFAU - Institute for Labour Market Policy Evaluation. [Downloadable!]
  20. Jackman, Richard & Savouri, Savvas, 1992. "Regional Migration in Britain: An Analysis of Gross Flows Using NHS Central Register Data," Economic Journal, Royal Economic Society, vol. 102(415), pages 1433-50, November. [Downloadable!] (restricted)
  21. 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)
  22. Fallick, Bruce Chelimsky, 1992. "Job Security and Job Search in More Than One Labor Market," Economic Inquiry, Oxford University Press, vol. 30(4), pages 742-45, October.
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Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

  1. Boris Hirsch & Thorsten Schank & Claus Schnabel, 2008. "Differences in Labor Supply to Monopsonistic Firms and the Gender Pay Gap: An Empirical Analysis Using Linked Employer-Employee Data from Germany," Working Papers 1111, Princeton University, Department of Economics, Industrial Relations Section.. [Downloadable!]
  2. Fitzenberger, Bernd & Wilke, Ralf A., 2005. "Using Quantile Regression for Duration Analysis," ZEW Discussion Papers 05-65, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
    Other versions:
  3. Arntz, Melanie, 2006. "What attracts human capital? : Understanding the skill composition of interregional job matches in Germany," ZEW Discussion Papers 06-62, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research. [Downloadable!]
  4. Boris Hirsch & Thorsten Schank & Claus Schnabel, 2006. "Gender Differences in Labor Supply to Monopsonistic Firms: An Empirical Analysis Using Linked Employer-Employee Data from Germany," IZA Discussion Papers 2443, Institute for the Study of Labor (IZA). [Downloadable!]
    Other versions:
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