Abstract
This paper examines the determinants of skill-selective regional migration in a context where modelling the migration decision as a wage-maximizing process may be insufficient due to persistent employment disparities. Based on a Borjas-type framework it is shown that high-skilled workers are disproportionately attracted to regions with higher mean wages and employment chances as well as higher regional wage and employment inequalities. Estimates from a labour flow fixed-effects model and a general methods of moments (GMM) estimator show that these predictions hold, but only employment disparities induce a robust and significant skill sorting. The paper thus establishes a missing link about why employment disparities may actually be self-reinforcing.
Original language | English |
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Pages (from-to) | 1719-1738 |
Journal | Regional Studies |
Volume | 48 |
Issue number | 10 |
DOIs | |
Publication status | Published - 2014 |
Externally published | Yes |
Keywords
- migration selectivity
- wage inequality
- employment inequality
- regional disparities