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Migration and Labour Market Adjustment: Empirical evidence from Finland 1985-90

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  • Hannu Tervo

Abstract

This paper addresses the question of the role of migration as an adjustment process by analysing the relationship between unemployment and labour force mobility. The empirical analysis deals with long-distance migration in Finland in the period 1985-90. When considered within a multivariate setting in which personal and place characteristics are held constant, the results show that higher origin unemployment rates increase outmigration, but not particularly for unemployed workers. Three outcomes are deduced from the results. First, the equilibrating process of interregional migration is slow-although working in the right direction-and becomes steadily slower as regional unemployment differentials fall. Secondly, the size of high-unemployment regions, as measured in terms of the labour force, decreases during the adjustment process as employed persons also leave the region. Thirdly, high-unemployment regions in particular lose their young and educated workers. The danger of the process of cumulative causation is great in these regions.

Suggested Citation

  • Hannu Tervo, 2000. "Migration and Labour Market Adjustment: Empirical evidence from Finland 1985-90," International Review of Applied Economics, Taylor & Francis Journals, vol. 14(3), pages 343-360.
  • Handle: RePEc:taf:irapec:v:14:y:2000:i:3:p:343-360
    DOI: 10.1080/02692170050084079
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    References listed on IDEAS

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    1. Olivier Jean Blanchard & Lawrence F. Katz, 1992. "Regional Evolutions," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 23(1), pages 1-76.
    2. Hannu Tervo, 2000. "Post-Migratory Employment Prospects: Evidence from Finland," LABOUR, CEIS, vol. 14(2), pages 331-350, June.
    3. Jaakko Pehkonen & Hannu Tervo, 1998. "Persistence and Turnover in Regional Unemployment Disparities," Regional Studies, Taylor & Francis Journals, vol. 32(5), pages 445-458.
    4. Greenwood, Michael J. & Mueser, Peter R. & Plane, David A. & Schlottmann, Alan M., 1991. "New Directions in Migration Research: Perspectives from Some North American Regional Science Disciplines," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 25(4), pages 237-270.
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    6. Antolin, Pablo & Bover, Olympia, 1997. "Regional Migration in Spain: The Effect of Personal Characteristics and of Unemployment, Wage and House Price Differentials Using Pooled Cross-Sections," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 59(2), pages 215-235, May.
    7. Stephen T. Marston, 1985. "Two Views of the Geographic Distribution of Unemployment," The Quarterly Journal of Economics, Oxford University Press, vol. 100(1), pages 57-79.
    8. 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 1433-1450, November.
    9. Oswald Andrew J., 1996. "A Conjecture on the Explanation for High Unemployment in the Industrialized Nations : Part I," The Warwick Economics Research Paper Series (TWERPS) 475, University of Warwick, Department of Economics.
    10. DaVanzo, Julie, 1983. "Repeat Migration in the United States: Who Moves Back and Who Moves On?," The Review of Economics and Statistics, MIT Press, vol. 65(4), pages 552-559, November.
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    Cited by:

    1. Christoph Kern, 2014. "Regional Structures and Mobility Dispositions: A Multilevel Proportional- & Partial-Proportional Odds Approach," SOEPpapers on Multidisciplinary Panel Data Research 681, DIW Berlin, The German Socio-Economic Panel (SOEP).
    2. Ubarevi?ien?, R?ta & van Ham, Maarten, 2016. "Population Decline in Lithuania: Who Lives in Declining Regions and Who Leaves?," IZA Discussion Papers 10160, Institute for the Study of Labor (IZA).
    3. N. Groenewold & A.J. Hagger, 2008. "Regional Unemployment Disparities: An Evaluation Of Policy Measures ," Australian Economic Papers, Wiley Blackwell, vol. 47(4), pages 355-375, December.
    4. Pekkala, Sari & Tervo, Hannu, 2002. " Unemployment and Migration: Does Moving Help?," Scandinavian Journal of Economics, Wiley Blackwell, vol. 104(4), pages 621-639, December.
    5. 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.
    6. Monastiriotis, Vassilis & Kaplanis, Ioannis, 2011. "Flexible employment and cross- regional adjustment," Working Papers 2072/179671, Universitat Rovira i Virgili, Department of Economics.
    7. Peter Berck & Sofia Tano & Olle Westerlund, 2016. "Regional Sorting of Human Capital: The Choice of Location among Young Adults in Sweden," Regional Studies, Taylor & Francis Journals, vol. 50(5), pages 757-770, May.
    8. Haapanen, Mika, 1998. "Internal Migration and Labour Market Transitions of Unemployment Workers," Discussion Papers 179, VATT Institute for Economic Research.

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