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Internal Migration in Regions of Germany: A Panel Data Analysis. ENEPRI Working Paper No. 12, September 2002

Parikh, Ashok and Van Leuvensteijn, Michiel. (2002) Internal Migration in Regions of Germany: A Panel Data Analysis. ENEPRI Working Paper No. 12, September 2002. [Working Paper]

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    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.

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    Item Type: Working Paper
    Uncontrolled Keywords: Panel Data; Migration; Non-linear and Infrastructure; wage policy.
    Subjects for non-EU documents: EU policies and themes > Policies & related activities > Third Pillar/JHA/PJCC/AFSJ > immigration policy
    Countries > Germany
    Subjects for EU documents: UNSPECIFIED
    EU Series and Periodicals: UNSPECIFIED
    EU Annual Reports: UNSPECIFIED
    Series: Series > Centre for European Policy Studies (Brussels) > ENEPRI Working Papers
    Depositing User: Phil Wilkin
    Official EU Document: No
    Language: English
    Date Deposited: 14 Oct 2004
    Page Range: p. 25
    Last Modified: 15 Feb 2011 17:20

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