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

  • Bauernschuster, Stefan


    (Ifo Institute for Economic Research)

  • Falck, Oliver


    (Ifo Institute for Economic Research)

  • Heblich, Stephan


    (University of Bristol)

  • Suedekum, Jens


    (Heinrich Heine University Düsseldorf)

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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Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 6860.

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Length: 29 pages
Date of creation: Sep 2012
Date of revision:
Publication status: published in: Journal of Economic Behavior and Organization, 2014, 98 (Feb), 56-69
Handle: RePEc:iza:izadps:dp6860
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References listed on IDEAS
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  1. Stelios Michalopoulos, 2011. "The Origins of Technolinguistic Diversity," Economics Working Papers 0095, Institute for Advanced Study, School of Social Science.
  2. David A. Jaeger & Holger Bonin & Thomas Dohmen & Armin Falk & David Huffman & Uwe Sunde, 2007. "Direct Evidence on Risk Attitudes and Migration," CReAM Discussion Paper Series 0703, Centre for Research and Analysis of Migration (CReAM), Department of Economics, University College London.
  3. Ofer Malamud & Abigail Wozniak, 2012. "The Impact of College on Migration: Evidence from the Vietnam Generation," Journal of Human Resources, University of Wisconsin Press, vol. 47(4), pages 913-950.
  4. Melitz, Jacques, 2008. "Language and foreign trade," European Economic Review, Elsevier, vol. 52(4), pages 667-699, May.
  5. Gert G. Wagner & Joachim R. Frick & Jürgen Schupp, 2007. "The German Socio-Economic Panel Study (SOEP) – Scope, Evolution and Enhancements," Schmollers Jahrbuch : Journal of Applied Social Science Studies / Zeitschrift für Wirtschafts- und Sozialwissenschaften, Duncker & Humblot, Berlin, vol. 127(1), pages 139-169.
  6. Felbermayr, Gabriel & Toubal, Farid, 2006. "Cultural proximity and trade," Tübinger Diskussionsbeiträge 305, University of Tübingen, School of Business and Economics.
  7. Guiso, Luigi & Sapienza, Paola & Zingales, Luigi, 2005. "Cultural Biases in Economic Exchange," CEPR Discussion Papers 4837, C.E.P.R. Discussion Papers.
  8. Glaeser, Edward L & Mare, David C, 2001. "Cities and Skills," Journal of Labor Economics, University of Chicago Press, vol. 19(2), pages 316-42, April.
  9. Molloy, Raven & Smith, Christopher L. & Wozniak, Abigail, 2011. "Internal Migration in the United States," IZA Discussion Papers 5903, Institute for the Study of Labor (IZA).
  10. Gordon B. Dahl, 2002. "Mobility and the Return to Education: Testing a Roy Model with Multiple Markets," RCER Working Papers 488, University of Rochester - Center for Economic Research (RCER).
  11. Guido Tabellini, 2008. "Presidential Address Institutions and Culture," Journal of the European Economic Association, MIT Press, vol. 6(2-3), pages 255-294, 04-05.
  12. Jeffrey Grogger, 2011. "Speech Patterns and Racial Wage Inequality," Journal of Human Resources, University of Wisconsin Press, vol. 46(1), pages 1-25.
  13. 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.
  14. Stephen Machin & Panu Pelkonen & Kjell Salvanes, 2008. "Education and Mobility," CEE Discussion Papers 0100, Centre for the Economics of Education, LSE.
  15. Jennifer Hunt, 2004. "Are Migrants More Skilled than Non-Migrants? Repeat, Return and Same-Employer Migrants," NBER Working Papers 10633, National Bureau of Economic Research, Inc.
  16. repec:hal:journl:halshs-00641280 is not listed on IDEAS
  17. 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.
  18. Schwartz, Aba, 1973. "Interpreting the Effect of Distance on Migration," Journal of Political Economy, University of Chicago Press, vol. 81(5), pages 1153-69, Sept.-Oct.
  19. Peri, Giovanni, 2002. "Young workers, learning, and agglomerations," Journal of Urban Economics, Elsevier, vol. 52(3), pages 582-607, November.
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