Unequal Pay or Unequal Employment? What Drives the Self-Selection of Internal Migrants in Germany?
This paper examines the determinants of internal migration in a context where wages tend to be rather inflexible at a regional scale so that regional labor demand shocks have a prolonged impact on employment rates. Regional income differentials, then, reflect both regional pay and employment differentials. In such a context, migrants tend to move to regions that best reward their skills in terms of both of these dimensions. As an extension to the Borjas framework, the paper thus hypothesizes that regions with a low employment inequality attract more unskilled workers compared to regions with unequal employment chances. By estimating a migration model for the average skill level of gross labor flows between 27 German regions, we find evidence in favor of this hypothesis. While rising employment inequality in a region raises the average skill level of an in-migrant, higher pay inequality in a region does not have a significant impact on the average skill level of its in-migrants. A higher employment inequality in Eastern as compared to Western Germany may, thus, be the missing link to explain the fact that East-West migrants tend to be rather unskilled.
|Date of creation:||Sep 2011|
|Date of revision:|
|Contact details of provider:|| Postal: |
Web page: http://www.ersa.org
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Ashok Parikh & Michiel Van Leuvensteijn, 2002. "Internal Migration in Regions of Germany: A Panel Data Analysis," Economics Working Papers 012, European Network of Economic Policy Research Institutes.
- Herbert Brücker & Parvati Trübswetter, 2004.
"Do the Best Go West?: An Analysis of the Self-Selection of Employed East-West Migrants in Germany,"
Discussion Papers of DIW Berlin
396, DIW Berlin, German Institute for Economic Research.
- Herbert BrÃ¼cker & Parvati TrÃ¼bswetter, 2007. "Do the best go west? An analysis of the self-selection of employed East-West migrants in Germany," Empirica, Springer, vol. 34(4), pages 371-395, September.
- Brücker, Herbert & Trübswetter, Parvati, 2004. "Do the Best Go West? An Analysis of the Self-Selection of Employed East-West Migrants in Germany," IZA Discussion Papers 986, Institute for the Study of Labor (IZA).
- Ugo Fratesi & Massimiliano Riggi, 2004. "Migration and Regional Disparities: the Role of Skill Biased Flows," Urban/Regional 0407004, EconWPA.
- Gary L. Hunt & Richard E. Mueller, 2004. "North American Migration: Returns to Skill, Border Effects, and Mobility Costs," The Review of Economics and Statistics, MIT Press, vol. 86(4), pages 988-1007, November.
- Kanbur, Ravi & Rapoport, Hillel, 2003.
"Migration Selectivity And The Evolution Of Spatial Inequality,"
127769, Cornell University, Department of Applied Economics and Management.
- Ravi Kanbur & Hillel Rapoport, 2005. "Migration selectivity and the evolution of spatial inequality," Journal of Economic Geography, Oxford University Press, vol. 5(1), pages 43-57, January.
- Ravi Kanbur & Hillel Rapoport, 2004. "Migration Selectivity and the Evolution of Spatial Inequality," Working Papers 2004-04, Bar-Ilan University, Department of Economics.
- Gernandt, Johannes & Pfeiffer, Friedhelm, 2008.
"Wage Convergence and Inequality after Unification: (East) Germany in Transition,"
ZEW Discussion Papers
08-022, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Johannes Gernandt & Friedhelm Pfeiffer, 2008. "Wage Convergence and Inequality after Unification: (East) Germany in Transition," SOEPpapers on Multidisciplinary Panel Data Research 107, DIW Berlin, The German Socio-Economic Panel (SOEP).
- Melanie Arntz, 2010.
"What Attracts Human Capital? Understanding the Skill Composition of Interregional Job Matches in Germany,"
Taylor & Francis Journals, vol. 44(4), pages 423-441.
- Arntz, Melanie, 2006. "What attracts human capital? Understanding the skill composition of interregional job matches in Germany," ZEW Discussion Papers 06-62, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Dostie, Benoit & Léger, Pierre Thomas, 2006.
"Self-Selection in Migration and Returns to Unobservable Skills,"
IZA Discussion Papers
1942, Institute for the Study of Labor (IZA).
- Benoit Dostie & Pierre Thomas Léger, 2006. "Self-selection in migration and returns to unobservable skills," Cahiers de recherche 06-01, HEC Montréal, Institut d'économie appliquée.
- George J. Borjas & Stephen G. Bronars & Stephen J. Trejo, 1992.
"Self-Selection and Internal Migration in the United States,"
NBER Working Papers
4002, National Bureau of Economic Research, Inc.
- Borjas, George J. & Bronars, Stephen G. & Trejo, Stephen J., 1992. "Self-selection and internal migration in the United States," Journal of Urban Economics, Elsevier, vol. 32(2), pages 159-185, September.
When requesting a correction, please mention this item's handle: RePEc:wiw:wiwrsa:ersa11p972. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Gunther Maier)
If references are entirely missing, you can add them using this form.