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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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