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The Geographical Mobility of Unemployed Workers: Evidence from West Germany

  • Arntz, Melanie

Using a competing-risk framework of exiting unemployment to jobs in a local or a distant labor market area, this paper investigates whether unemployed individuals in West Germany choose search strategies that favor migrating out of declining regions. Moreover, the paper investigates how such search strategies are affected by the local accommodation of labor market programs. Such programs have been suggested to lead to a regional locking-in effect. Empirical results are obtained from a stratified Cox partial likelihood proportional hazards model that allows for location-specific fixed effects and are compared to estimates from a parametric log-logistic hazard model that takes account of unobserved individual heterogeneity. The findings indicate that unemployed in West Germany are responsive to local labor market conditions and are more likely to leave regions with unfavorable re-employment opportunities. No locking-in effect from labor market programs is found. The probability of migration is found to increase with search time.

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Paper provided by ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research in its series ZEW Discussion Papers with number 05-34.

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Date of creation: 2005
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Handle: RePEc:zbw:zewdip:3188
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  6. Hujer, Reinhard & Caliendo, Marco & Zeiss, Christopher & Blien, Uwe, 2002. "Macroeconometric evaluation of active labour market policies in Germany - a dynamic panel approach using regional data," ERSA conference papers ersa02p225, European Regional Science Association.
  7. Damm, Anna Piil & Rosholm, Michael, 2003. "Employment Effects of Dispersal Policies on Refugee Immigrants, Part I: Theory," IZA Discussion Papers 924, Institute for the Study of Labor (IZA).
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  10. Yankow, Jeffrey J., 2004. "The Geographic Mobility of Displaced Workers: Do Local Employment Conditions Matter?," The Review of Regional Studies, Southern Regional Science Association, vol. 34(2), pages 120-36.
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  16. Arntz, Melanie & Wilke, Ralf A., 2005. "Map Intersection Based Merging Schemes for Administrative Data Sources and an Application to Germany," ZEW Discussion Papers 05-20, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
  17. Fallick, Bruce Chelimsky, 1992. "Job Security and Job Search in More Than One Labor Market," Economic Inquiry, Western Economic Association International, vol. 30(4), pages 742-45, October.
  18. McCall, B P & McCall, J J, 1987. "A Sequential Study of Migration and Job Search," Journal of Labor Economics, University of Chicago Press, vol. 5(4), pages 452-76, October.
  19. Lee, Sokbae & Wilke, Ralf A., 2005. "Reform of Unemployment Compensation in Germany: A Nonparametric Bounds Analysis Using Register Data," ZEW Discussion Papers 05-29, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
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