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Regional Unemployment and Job Switches in Germany – An Analysis at District Level

  • Antje Mertens

    ()

  • Anette Haas

    ()

The role of mobility is central to the debate on reducing unemployment. A further question is to what extent a lack of mobility enforces regional disparities. Using a micro data set containing information about two cohorts we analyse the impact of regional unemployment at district level to regional employment duration. As an alternative to the frequently used Logit analysis approach we focus to duration time analyses. We use Cox Regression (Breslow Method for ties) and Piece wise constant models to find out the impact of regional unemployment rate for duration working in a special region. Additionally we could differentiate between voluntary and involuntary mobility. The results of this comparison show a contrary influence of the regional unemployment rate. Our results confirm the lower mobility of woman and that the younger cohort exhibits higher mobility rates. We also compare downward/upward moves (defined as wage losses/gains after mobility) and could not find evidence for influence of regional unemployment rate to wage growth. This yields us to the conclusion that high levels of regional unemployment inhibit mobility because of a lack of vacancies.

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Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa05p592.

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Date of creation: Aug 2005
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Handle: RePEc:wiw:wiwrsa:ersa05p592
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  1. Pissarides, Christopher A & McMaster, Ian, 1990. "Regional Migration, Wages and Unemployment: Empirical Evidence and Implications for Policy," Oxford Economic Papers, Oxford University Press, vol. 42(4), pages 812-31, October.
  2. 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.
  3. Jennifer Hunt, 2000. "Why Do People Still Live in East Germany?," Discussion Papers of DIW Berlin 201, DIW Berlin, German Institute for Economic Research.
  4. Lutz Bellmann & Uwe Blien, 2001. "Wage curve analyses of establishment data from western Germany," Industrial and Labor Relations Review, ILR Review, Cornell University, ILR School, vol. 54(4), pages 851-863, July.
  5. Cameron, Gavin & Muellbauer, John, 1998. "The Housing Market and Regional Commuting and Migration Choices," Scottish Journal of Political Economy, Scottish Economic Society, vol. 45(4), pages 420-46, September.
  6. Pischke, Jörn-Steffen & Velling, Johannes, 1994. "Wage and employment effects of immigration to Germany: an analysis based on local labor markets," ZEW Discussion Papers 94-03, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  7. Topel, Robert H, 1986. "Local Labor Markets," Journal of Political Economy, University of Chicago Press, vol. 94(3), pages S111-43, June.
  8. Decressin, Jörg & Fatás, Antonio, 1994. "Regional Labour Market Dynamics in Europe," CEPR Discussion Papers 1085, C.E.P.R. Discussion Papers.
  9. Fertig, Michael & Schmidt, Christoph M., 2002. "Mobility within Europe – What do we (still not) know?," IZA Discussion Papers 447, Institute for the Study of Labor (IZA).
  10. Blanchflower, David G & Oswald, Andrew J, 1990. " The Wage Curve," Scandinavian Journal of Economics, Wiley Blackwell, vol. 92(2), pages 215-35.
    • David G. Blanchflower & Andrew J. Oswald, 1995. "The Wage Curve," MIT Press Books, The MIT Press, edition 1, volume 1, number 026202375x, June.
  11. Pissarides, Christopher A & Wadsworth, Jonathan, 1989. "Unemployment and the Inter-regional Mobility of Labour," Economic Journal, Royal Economic Society, vol. 99(397), pages 739-55, September.
  12. Puhani, Patrick A., 1999. "Labour Mobility - An Adjustment Mechanism in Euroland?," IZA Discussion Papers 34, Institute for the Study of Labor (IZA).
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