Internal migration in West Germany and implications for East-West salary convergence

Decressin, Jörg

doi:10.1007/bf02707708

Cited by 58 publications

(33 citation statements)

References 13 publications

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“…It is well established that unobserved migration costs seem to be high in Germany, given that in general we do not observe significant migration flows in response to economic conditions (e.g. Schündeln, 2005, andDecressin, 1994). If we find 8 significant differences in worker characteristics between East and West, these could be caused either by the different educational backgrounds, or by self-selected migration of high-skilled East German workers into the West.…”

Section: The Modelmentioning

confidence: 57%

“…The total number of available jobs per county is equal to the number of people employed in each county in 2001, plus three times the number of vacancies posted at the employment agency for the respective county. 5 The number of vacancies corresponds to vacancies posted at the employment office, and the IAB estimates that roughly a third of all vacancies are posted that way. The total number of people in the labor force per county is set equal to the labor force in each county, i.e.…”

Section: Calibrationmentioning

confidence: 99%

“…9 We calibrate d min = 15 minutes and d max = 100 minutes based on the reported willingness to commute from 5 The data of people employed in each county, which includes employees, self-employed, and civil servants, as well as the data of vacancies was made available to us by the IAB. 6 Again, the number of people working includes employees, self-employed, and civil servants.…”

Section: Calibrationmentioning

confidence: 99%

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Explaining the low labor productivity in East Germany – A spatial analysis

Fuchs‐Schündeln

Izem

2012

Journal of Comparative Economics

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. www.econstor.eu Terms of use: Documents in I n s t i t u t f ü r W e l t w i r t s c h a f t a n d e r U n i v e r s i t ä t K i e l K i e l I n s t i t u t e f o r t h e W o r l d E c o n o m y Kiel Institute for World Economics AbstractThis paper presents a spatial analysis of unemployment rates in Germany. The goal of this analysis is to explain the stubbornly low labor productivity and high unemployment rates in Eastern Germany. We build a model of commuting to distinguish between worker and job characteristics as the main causes of the low labor productivity, and use the method of simulated moments to estimate the East-West ratios of worker and job characteristics. The "slope" of the unemployment rate across the former East-West border serves as the main identification of the model. The preliminary results suggest that East and West German skills are very similar, while job characteristics differ significantly between East and West.

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Section: The Modelmentioning

confidence: 57%

Section: Calibrationmentioning

confidence: 99%

Section: Calibrationmentioning

confidence: 99%

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Explaining the low labor productivity in East Germany – A spatial analysis

Fuchs‐Schündeln

Izem

2012

Journal of Comparative Economics

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“…If, for example, the home district offers very few training positions compared to surrounding districts, the initial search terms of quantity and/or quality, compared to the local regional situation [28] [29]. Thus, spatial mobility can be assumed to be directed to "escalator regions" [30].…”

Section: On the Relevance Of Spatial Externalitiesmentioning

confidence: 99%

Modeling Spatial Opportunity Structures and Youths’ Transitions from School to Training

Wicht¹,

Nonnenmacher²

2017

OJS

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This paper examines the significance of spatial externalities for youths' school-to-training transitions in Germany. For this purpose, it is necessary to address the methodological question of how an individual's spatial context has to be operationalized with respect to both its extent and the problem of spatial autocorrelation. Our analyses show that the "zone of influence" comprises of the whole of Germany, not only close-by districts, and that these effects differ between structurally weak and strong regions. Consequently, assuming that only close proximity affects individual outcomes may disregard relevant contextual influences, and for spatial models that require an a priori definition of the weights for spatial units, it may be erroneous to make a decision based on this assumption. Concerning spatial autocorrelation, we found that neglecting local spatial autocorrelation at the context level causes considerable bias to the estimates, especially for districts that are close to the home district.

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“…Taking a closer look at German internal migration flows, among the earlier contributions Decressin (1994) examines gross migration flows for the West German states between 1977 and 1988. His results show that a wage increase in one region relative to others causes a disproportional rise the gross migration levels in the first region, while a rise in the unemployment in a region relative to others disproportionally lowers the gross migration levels.…”

Section: Literature Reviewmentioning

confidence: 99%

Internal Migration, Regional Labour Market Dynamics and Implications for German East-West Disparities - Results from a Panel VAR

2009

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. The working papers published in the Series constitute work in progress circulated to stimulate discussion and critical comments. Views expressed represent exclusively the authors' own opinions and do not necessarily reflect those of the editors. We adopt a Panel VAR approach to identify the feedback effects among the variables and analyse the dynamic properties of the system through impulseresponse functions. We also use the model to track the evolution of the particular East-West migration since re-unification aiming to shed more light on the East German "empirical puzzle", characterized by lower migration responses than expected from the regional labour market position relative to the West. We indeed get evidence for such a puzzle throughout the mid-1990s, which is likely to be caused by huge West-East income transfers, a fast exogenously driven wage convergence and the possibility of East-West commuting. However, we also observe an inversion of this relationship for later periods: That is, along with a second wave of East-West movements around 2001 net flows out of East Germany were much higher than expected after controlling for its weak labour market and macroeconomic performance. Since this second wave is also accompanied by a gradual fading out of economic distortions, this supports the view of "repressed" migration flows for that period. Terms of use: Documents inJEL Classification: C33, J61, R23

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Internal migration in West Germany and implications for East-West salary convergence

Cited by 58 publications

References 13 publications

Explaining the low labor productivity in East Germany – A spatial analysis

Explaining the low labor productivity in East Germany – A spatial analysis

Modeling Spatial Opportunity Structures and Youths’ Transitions from School to Training

Internal Migration, Regional Labour Market Dynamics and Implications for German East-West Disparities - Results from a Panel VAR

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