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The returns to job mobility and inter†regional migration: Evidence from Germany

Author

Listed:
  • Lehmer, Florian
  • Ludsteck, Johannes

Abstract

This paper provides an extensive analysis of the wage effects of inter†regional mobility within Germany. Comparing skilled region†type movers with skilled non†migratory establishment movers we find clear evidence of an additional effect of inter†regional mobility which becomes fully effective after three years. The highest returns are obtained by young workers and by rural†urban movers. The introduction of fixed district and establishment effects tackles the notorious nuisance of regional price†level differences and reveals that the mobility returns can be decomposed into roughly equal contributions of human capital accumulation and search gains.

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Handle: RePEc:eee:paresc:v:90:y:2011:i:3:p:549-572
DOI: 10.1111/j.1435-5957.2010.00326.x
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Keywords

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JEL classification:

  • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
  • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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