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Workplace Connections and Labor Migration

Author

Listed:
  • Michelle Hansch
  • Jan Sebastian Nimczik
  • Alexandra Spitz-Oener

Abstract

We examine how former coworkers influence migration decisions following major labor market shocks, using the quasi-experimental setting of German reunification. Displaced East German workers are more likely to move to West Germany if they have former coworkers from the German Democratic Republic already there. Migration is strategic: workers move when their labor market prospects align with those of their contacts already in the West, and those contacts have positive labor market experiences. An extended Roy model rationalizes these findings, suggesting that migration is driven by relevant, job-specific information rather than social support from contacts.

Suggested Citation

  • Michelle Hansch & Jan Sebastian Nimczik & Alexandra Spitz-Oener, 2025. "Workplace Connections and Labor Migration," RFBerlin Discussion Paper Series 2577, Rockwool Foundation Berlin (RF Berlin).
    • Handle: RePEc:crm:wpaper:2577
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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
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search; Learning; Information and Knowledge; Communication; Belief; Unawareness

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