Die Dis cus si on Pape rs die nen einer mög lichst schnel len Ver brei tung von neue ren For schungs arbei ten des ZEW. Die Bei trä ge lie gen in allei ni ger Ver ant wor tung der Auto ren und stel len nicht not wen di ger wei se die Mei nung des ZEW dar.Dis cus si on Papers are inten ded to make results of ZEW research prompt ly avai la ble to other eco no mists in order to encou ra ge dis cus si on and sug gesti ons for revi si ons. The aut hors are sole ly respon si ble for the con tents which do not neces sa ri ly repre sent the opi ni on of the ZEW.
AbstractDecisions taken at the start of one's career have long-term consequences and one important decision graduates have to make is whether to be regionally mobile when looking for the first job. We investigate whether being regionally mobile for the first job following graduation rather than to stay in the place of graduation pays off. Existing research on regional mobility mostly focuses on job-to-job mobility. We analyse the determinants of early career mobility and estimate a bivariate probit model to account for the dependency between the migration decisions for tertiary education and for the first job. In order to account for self-selection with respect to migration decisions, we exploit variation in the availability of university places at the regional level. Our results show that there is significant dependency between migration decisions made before and after tertiary education. Secondly, using an IV estimation strategy, we find significantly positive wage returns to regional mobility for the first job.JEL Classification: J31, J61