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Testing the Neoclassical Migration Model: Overall and Age-Group Specific Results for German Regions

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  • Mitze, Timo
  • Reinkowski, Janina

Abstract

This paper tests the empirical validity of the neoclassical migration model in predicting German internal migration flows. We estimate static and dynamic migration functions for 97 Spatial Planning Regions between 1996 and 2006 using key labor market signals including income and unemployment differences among a broader set of explanatory variables. Besides an aggregate specification we also estimate the model for agegroup related subsamples. Our results give empirical support for the main transmission channels identified by the neoclassical framework - both at the aggregate level as well as for age-group specific estimates. Thereby, the impact of labor market signals is tested to be of greatest magnitude for workforce relevant age-groups and especially young cohorts between 18 to 25 and 25 to 30 years. This latter result underlines the prominent role played by labor market conditions in determining internal migration rates of the working population in Germany.

Suggested Citation

  • Mitze, Timo & Reinkowski, Janina, 2010. "Testing the Neoclassical Migration Model: Overall and Age-Group Specific Results for German Regions," Ruhr Economic Papers 226, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
  • Handle: RePEc:zbw:rwirep:226
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    Cited by:

    1. Timo Mitze & Torben Schmidt, 2015. "Internal migration, regional labor markets and the role of agglomeration economies," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 55(1), pages 61-101, October.

    More about this item

    Keywords

    German internal migration; Harris-Todaro Model; dynamic panel data;

    JEL classification:

    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models

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