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Unemployment and Migration: Does Moving Help?

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  • Pekkala, Sari
  • Tervo, Hannu

Abstract

The migration behaviour of the unemployed in Finland is analysed in terms of the causal effect of moving on individual employment status. In 1994, 17 percent of the labour force was unemployed and the unemployment rate exhibited a very slow decline in 1994-1996. Over half of those who were unemployed at the end of 1994 were still unemployed two years later. The propensity to find a job is somewhat greater among migrants. However, the positive effect of moving diminishes once other personal characteristics are accounted for. Moreover, when controlling for endogenous migrant selectivity, an insignificant or even negative effect on employment status emerges. This indicates that the relatively better quality of the migrants (e.g. age, education, human capital and unobserved ability), rather than the act of moving itself, causes an improvement in re-employability. Hence, migration alone may not be a very effective mechanism for alleviating individual unemployment. Copyright 2002 by The editors of the Scandinavian Journal of Economics.

Suggested Citation

  • Pekkala, Sari & Tervo, Hannu, 2002. "Unemployment and Migration: Does Moving Help?," Scandinavian Journal of Economics, Wiley Blackwell, vol. 104(4), pages 621-639, December.
    • Handle: RePEc:bla:scandj:v:104:y:2002:i:4:p:621-39
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    Citations

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    Cited by:

    1. Mika Haapanen & Hannu Tervo, 2006. "Migration Behaviour and Duration of Residence Spells of Graduating Students in Finland in 1987-2002," ERSA conference papers ersa06p379, European Regional Science Association.
    2. Adolfo Maza, 2006. "Migrations and Regional Convergence: The Case of Spain," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 26(2), pages 191-202, October.
    3. Fackler, Daniel & Rippe, Lisa, 2016. "Losing work, moving away? Regional mobility after job loss," IWH Discussion Papers 26/2016, Halle Institute for Economic Research (IWH).
    4. Lehmer, Florian & Ludsteck, Johannes, 2008. "The returns to job mobility and inter-regional migration," IAB-Discussion Paper 200806, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    5. Birk, Angela, 2004. "Sequential Migration, and the German Reunification," HWWA Discussion Papers 305, Hamburg Institute of International Economics (HWWA).
    6. Kristiina Huttunen & Jarle Møen & Kjell G. Salvanes, 2018. "Job Loss and Regional Mobility," Journal of Labor Economics, University of Chicago Press, vol. 36(2), pages 479-509.
    7. Christopher Goetz, 2014. "Unemployment Duration And Geographic Mobility: Do Movers Fare Better Than Stayers?," Working Papers 14-41, Center for Economic Studies, U.S. Census Bureau.
    8. Petri Böckerman & Tuomas Kosonen & Terhi Maczulskij, 2018. "Job Displacement, Inter-Regional Mobility and Long-Term Earnings," Working Papers 323, Työn ja talouden tutkimus LABORE, The Labour Institute for Economic Research LABORE.
    9. Böckerman, Petri & Haapanen, Mika, 2010. "The effect of education on migration: Evidence from school reform," MPRA Paper 27629, University Library of Munich, Germany.
    10. Satu Nivalainen, 2004. "Where do migrants go? An analysis of urban and rural destined/originated migration in Finland in 1996-99," ERSA conference papers ersa04p317, European Regional Science Association.
    11. Brian Cushing & Jacques Poot, 2004. "Crossing boundaries and borders: Regional science advances in migration modelling," Advances in Spatial Science, in: Raymond J. G. M. Florax & David A. Plane (ed.), Fifty Years of Regional Science, pages 317-338, Springer.
    12. Abdulbaki Bilgic & Wojciech Florkowski, 2009. "The impact of license regulation on the number of recreation trips: is it worth considering?," Journal of Regulatory Economics, Springer, vol. 35(1), pages 45-69, February.
    13. Petri Böckerman & Mika Haapanen, 2013. "The effect of polytechnic reform on migration," Journal of Population Economics, Springer;European Society for Population Economics, vol. 26(2), pages 593-617, April.
    14. Satu Nivalainen, 2003. "Who move to rural areas? Micro Evidence from Finland," ERSA conference papers ersa03p214, European Regional Science Association.
    15. Malgorzata Switek, 2016. "Internal Migration and Life Satisfaction: Well-Being Paths of Young Adult Migrants," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 125(1), pages 191-241, January.
    16. Francisco Rowe & Jonathan Corcoran & Martin Bell, 2017. "The returns to migration and human capital accumulation pathways: non-metropolitan youth in the school-to-work transition," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 59(3), pages 819-845, November.
    17. Daniel Fackler & Lisa Rippe, 2016. "Losing Work, Moving away? Regional Mobility after Job Loss," SOEPpapers on Multidisciplinary Panel Data Research 861, DIW Berlin, The German Socio-Economic Panel (SOEP).
    18. Mika Haapanen & Hannu Tervo, 2012. "Migration Of The Highly Educated: Evidence From Residence Spells Of University Graduates," Journal of Regional Science, Wiley Blackwell, vol. 52(4), pages 587-605, October.
    19. Fischer, Lorenz Benedikt & Pfaffermayr, Michael, 2018. "The more the merrier? Migration and convergence among European regions," Regional Science and Urban Economics, Elsevier, vol. 72(C), pages 103-114.
    20. Amina Ebrahim & Murray Leibbrandt & Ingrid Woolard, 2015. "Strategies of the unemployed in South Africa: Does moving allow the unemployed to get ahead?," SALDRU Working Papers 157, Southern Africa Labour and Development Research Unit, University of Cape Town.
    21. Anders Boman, 2011. "Does migration pay? Earnings effects of geographic mobility following job displacement," Journal of Population Economics, Springer;European Society for Population Economics, vol. 24(4), pages 1369-1384, October.
    22. Boman, Anders, 2012. "Employment effects of extended geographic scope in job search," Labour Economics, Elsevier, vol. 19(5), pages 643-652.
    23. Longhi, Simonetta & Hynninen, Sanna-Mari, 2009. "Job competition and entry wages of highly educated workers: are there differences between Great Britain and Finland?," ISER Working Paper Series 2009-20, Institute for Social and Economic Research.
    24. Birk, Angela, 2004. "Sequential Migration, and the German Reunification," Discussion Paper Series 26338, Hamburg Institute of International Economics.
    25. Hämäläinen, Kari, 2003. "Education and Unemployment: State Dependence in Unemployment Among Young People in the 1990s," Discussion Papers 312, VATT Institute for Economic Research.

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