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Internal Migration in Regions of Germany: A Panel Data Analysis

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Abstract
The objectives of this paper are to examine the traditional determinants of interregional migration between regions of Germany after reunification in 1989. The period considered is 1993-95 as the high average migratory flows of the earlier period, 1989-92, had settled down to a level of about 12000 to 15000 per month by 1993. Wage convergence has taken place much more rapidly than the convergence in unemployment rates between regions of East and West Germany. Due to wage convergence we find that the relationship between regional wage differences and migration is non-linear. For white-collar workers the relationship is U-shaped while for the blue-collar workers, the relationship is inverted U-shape. The explanation for such a relationship lies in the ‘option theory of waiting’ and attitudes towards risk under wage convergence. While housing and infrastructure variables do play an important role at the margin, wage convergence can prevent the loss of human capital from East German regions to West Germany.

Suggested Citation

  • 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.
    • Handle: RePEc:epr:enepwp:012
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    File URL: http://www.enepri.org/Publications/WP012.pdf
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    Citations

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    Cited by:

    1. Justyna Wilk, 2015. "Using symbolic data in gravity model of population migration to reduce modifiable areal unit problem (MAUP)," Statistics in Transition new series, Główny Urząd Statystyczny (Polska), vol. 16(2), pages 243-264, June.
    2. Etzo, Ivan, 2007. "Determinants of interregional migration in Italy:A panel data analysis," MPRA Paper 5307, University Library of Munich, Germany.
    3. Terry Gregory & Melanie Arntz & Florian Lehmer, 2011. "Unequal Pay or Unequal Employment? What Drives the Self-Selection of Internal Migrants in Germany?," ERSA conference papers ersa11p972, European Regional Science Association.
    4. Wilk Justyna, 2015. "Using Symbolic Data in Gravity Model of Population Migration to Reduce Modifiable Areal Unit Problem (MAUP)," Statistics in Transition New Series, Polish Statistical Association, vol. 16(2), pages 243-264, June.
    5. Frank W. Heiland, 2004. "Trends in East-West German Migration from 1989 to 2002," Demographic Research, Max Planck Institute for Demographic Research, Rostock, Germany, vol. 11(7), pages 173-194.
    6. Caliendo, Marco & Cobb-Clark, Deborah A. & Hennecke, Juliane & Uhlendorff, Arne, 2019. "Locus of control and internal migration," Regional Science and Urban Economics, Elsevier, vol. 79(C).
    7. Sjef Ederveen & Richard Nahuis & Ashok Parikh, 2007. "Labour mobility and regional disparities: the role of female labour participation," Journal of Population Economics, Springer;European Society for Population Economics, vol. 20(4), pages 895-913, October.
    8. Zaiceva, Anzelika, 2006. "Self-Selection and the Returns to Geographic Mobility: What Can Be Learned from the German Reunification "Experiment"," IZA Discussion Papers 2524, Institute of Labor Economics (IZA).
    9. Caliendo, Marco & Cobb-Clark, Deborah A. & Hennecke, Juliane & Uhlendorff, Arne, 2019. "Locus of control and internal migration," Regional Science and Urban Economics, Elsevier, vol. 79(C).
    10. Frank Goetzke & Tilmann Rave, 2013. "Migration in Germany," International Regional Science Review, , vol. 36(2), pages 167-182, April.
    11. Justyna Wilk, 2015. "Using Symbolic Data In Gravity Model Of Population Migration To Reduce Modifiable Areal Unit Problem (Maup)," Statistics in Transition New Series, Polish Statistical Association, vol. 16(2), pages 243-264, June.
    12. Buch, Tanja & Hamann, Silke & Meier, Henning & Niebuhr, Annekatrin & Peters, Cornelius & Puckelwald, Johannes, 2011. "Analyse der Berücksichtigung eines Wanderungsindikators im Rahmen der Abgrenzung des GRW-Fördergebiets : Gutachten für die Gemeinschaftsaufgabe "Verbesserung der regionalen Wirtschaftsstruktur&qu," IAB-Forschungsbericht 201104, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    13. repec:rre:publsh:v:34:y:2004:i:2:p:156-71 is not listed on IDEAS

    More about this item

    Keywords

    panel data; wage differences; migration; non-linear and infrastructure;
    All these keywords.

    JEL classification:

    • C23 - Mathematical and Quantitative Methods - - Single Equation Models; Single Variables - - - Models with Panel Data; Spatio-temporal Models
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • 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

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