Jobs or Amenities â€“ What determines the migration balances of cities?
The population growth of cities in industrialized countries is characterized by striking disparities. While some cities experience a kind of resurgence in recent years others suffer from an ongoing depopulation. In this context an important issue refers to the question whether labour market conditions or amenities primarily account for the huge differences in citiesâ€™ demographic prospects. We investigate the determinants of migration balances of German cities focusing on mobility of workers and the significance of jobs and amenities. With investigating citiesâ€™ migration balances we choose a rather direct measure of urban attractiveness â€“ in contrast to studies that use employment growth or other indicators. Both the striking and persistent disparities in labour market performance and amenities across cities and the high internal migration â€“ in particular between East and West Germany â€“ predestine the country for an analysis of the determinants of urban migration balances. Moreover, massive demographic changes are already visible in several regions, notably in East Germany, and affect the economic and social perspectives of cities. The regression analysis rests on a panel data set that covers the period from 2000 to 2007. In order to deal with unobserved heterogeneity and bias due to endogenous regressors fixed effects models and instrument variable estimation are applied. Our results suggest that different groups of factors influence the urban net migration rates. Local labour market conditions influence the mobility decision but amenities matter too. There is some indication that relatively high wages, low unemployment and especially the creation of new jobs attracts mobile workers. Moreover, the quality of life that a city offers is an important factor for the migration balance. This is in particular reflected by the robust effects of the urban recreation area and the average flat size. Our findings also point to relevance of climatic conditions and accessibility. Beyond we identify a size effect, i.e. large cities seem to be ceteris paribus more attractive than small cities. This suggests that agglomeration economies impact on the migration decision of workers. Residents of larg cities seem to benefit from consumption of goods such as theatres and other cultural infrastructure that are only supplied if demand exceeds a certain threshold. But the positive correlation between city size and region specific effects might also reflect matching externalities that arise in large (labour) markets.
|Date of creation:||Oct 2012|
|Date of revision:|
|Contact details of provider:|| Postal: Welthandelsplatz 1, 1020 Vienna, Austria|
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.:
- Ed Glaeser & Jed Kolko & Albert Saiz, 2000.
NBER Working Papers
7790, National Bureau of Economic Research, Inc.
- Edward L. Glaeser & Jed Kolko & Albert Saiz, 2000. "Consumer City," Harvard Institute of Economic Research Working Papers 1901, Harvard - Institute of Economic Research.
- Mueser Peter R. & Graves Philip E., 1995. "Examining the Role of Economic Opportunity and Amenities in Explaining Population Redistribution," Journal of Urban Economics, Elsevier, vol. 37(2), pages 176-200, March.
- 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.
- Melanie Arntz, 2010. "What Attracts Human Capital? Understanding the Skill Composition of Interregional Job Matches in Germany," Regional Studies, Taylor & Francis Journals, vol. 44(4), pages 423-441.
- Mark D. Partridge, 2010. "The duelling models: NEG vs amenity migration in explaining US engines of growth," Papers in Regional Science, Wiley Blackwell, vol. 89(3), pages 513-536, 08.
- Ivan Etzo, 2011. "The Determinants Of The Recent Interregional Migration Flows In Italy: A Panel Data Analysis," Journal of Regional Science, Wiley Blackwell, vol. 51(5), pages 948-966, December.
- Chen, Yong & Rosenthal, Stuart S., 2008. "Local amenities and life-cycle migration: Do people move for jobs or fun?," Journal of Urban Economics, Elsevier, vol. 64(3), pages 519-537, November.
- Brigitte Waldorf, 2009. "Is human capital accumulation a self-propelling process? Comparing educational attainment levels of movers and stayers," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 43(2), pages 323-344, June.
- Edward L. Glaeser & Joshua D. Gottlieb, 2006.
"Urban Resurgence and the Consumer City,"
Harvard Institute of Economic Research Working Papers
2109, Harvard - Institute of Economic Research.
- Allen J. Scott, 2010. "Jobs or amenities? Destination choices of migrant engineers in the USA," Papers in Regional Science, Wiley Blackwell, vol. 89(1), pages 43-63, 03.
- 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.
- Chunhua Wang & JunJie Wu, 2011. "Natural amenities, increasing returns and urban development," Journal of Economic Geography, Oxford University Press, vol. 11(4), pages 687-707, July.
- Vicente Royuela & Rosina Moreno & Esther Vaya, 2010. "Influence of Quality of Life on Urban Growth: A Case Study of Barcelona, Spain," Regional Studies, Taylor & Francis Journals, vol. 44(5), pages 551-567.
- Thiess Büttner & Alexander Ebertz, 2007.
"Quality of Life in the Regions - Results for German Counties,"
Ifo Working Paper Series
Ifo Working Paper No. 49, Ifo Institute - Leibniz Institute for Economic Research at the University of Munich.
- Thiess Buettner & Alexander Ebertz, 2009. "Quality of life in the regions: results for German Counties," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 43(1), pages 89-112, March.
- Jesse M. Shapiro, 2005.
"Smart Cities: Quality of Life, Productivity, and the Growth Effects of Human Capital,"
NBER Working Papers
11615, National Bureau of Economic Research, Inc.
- Jesse M. Shapiro, 2006. "Smart Cities: Quality of Life, Productivity, and the Growth Effects of Human Capital," The Review of Economics and Statistics, MIT Press, vol. 88(2), pages 324-335, May.
- 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.
- 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.
- Edward L. Glaeser & Matthew G. Resseger, 2010. "The Complementarity Between Cities And Skills," Journal of Regional Science, Wiley Blackwell, vol. 50(1), pages 221-244.
- Enrico Moretti, 2010. "Local Multipliers," American Economic Review, American Economic Association, vol. 100(2), pages 373-77, May.
- Greenwood, Michael J. & Hunt, Gary L., 1989. "Jobs versus amenities in the analysis of metropolitan migration," Journal of Urban Economics, Elsevier, vol. 25(1), pages 1-16, January.
- Edward L Glaeser & Jesse M Shapiro, 2003. "Urban Growth in the 1990s: Is City Living Back?," Journal of Regional Science, Wiley Blackwell, vol. 43(1), pages 139-165.
When requesting a correction, please mention this item's handle: RePEc:wiw:wiwrsa:ersa12p401. 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.