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Why Are Educated and Risk-Loving Persons More Mobile across Regions?

  • Stefan Bauernschuster
  • Oliver Falck
  • Stephan Heblich
  • Jens Suedekum

Why are better educated and more risk-friendly persons more mobile across regions? To answer this question, we use micro data on internal migrants from the German Socio-Economic Panel (SOEP) 2000-2006 and merge this information with a unique proxy for region-pair-specific cultural distances across German regions constructed from historical local dialect patterns. Our findings indicate that risk-loving and skilled people are more mobile over longer distances because they are more willing to cross cultural boundaries and move to regions that are culturally different from their homes. Other types of distance-related migration costs cannot explain the lower distance sensitivity of educated and risk-loving individuals.

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File URL: http://www.diw.de/documents/publikationen/73/diw_01.c.413467.de/diw_sp0522.pdf
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Paper provided by DIW Berlin, The German Socio-Economic Panel (SOEP) in its series SOEPpapers on Multidisciplinary Panel Data Research with number 522.

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Length: 28 p.
Date of creation: 2012
Date of revision:
Handle: RePEc:diw:diwsop:diw_sp522
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  1. Jaeger, David A. & Dohmen, Thomas J. & Falk, Armin & Huffman, David & Sunde, Uwe & Bonin, Holger, 2010. "Direct evidence on risk attitudes and migration," Munich Reprints in Economics 19528, University of Munich, Department of Economics.
  2. Falck, Oliver & Heblich, Stephan & Lameli, Alfred & Sudekum, Jens, 2011. "Dialects, Cultural Identity, and Economic Exchange," Stirling Economics Discussion Papers 2011-01, University of Stirling, Division of Economics.
  3. Stelios Michalopoulos, 2011. "The Origins of Technolinguistic Diversity," Economics Working Papers 0095, Institute for Advanced Study, School of Social Science.
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  12. Gordon B. Dahl, 2002. "Mobility and the Return to Education: Testing a Roy Model with Multiple Markets," Econometrica, Econometric Society, vol. 70(6), pages 2367-2420, November.
  13. Victor Ginsburgh & Shlomo Weber, 2011. "How many languages do we need? The economics of Linguistic Diversity," ULB Institutional Repository 2013/152424, ULB -- Universite Libre de Bruxelles.
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  19. repec:hal:journl:halshs-00641280 is not listed on IDEAS
  20. Jeffrey Grogger, 2011. "Speech Patterns and Racial Wage Inequality," Journal of Human Resources, University of Wisconsin Press, vol. 46(1), pages 1-25.
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