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Selective migration, union wage setting and unemployment disparities in West Germany

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  • Jens Suedekum

Abstract

There are wide and persistent disparities between regional unemployment rates in West Germany. Furthermore, regions with high unemployment tend to have relatively low effective wages and vice versa. Internal migration is driven by these spatial disparities. However, mobility will not work as an adjustment mechanism, but rather perpetuate regional imbalances if there is a skill bias within the group of internal migrants. JEL Classification: J6, R11

Suggested Citation

  • Jens Suedekum, 2004. "Selective migration, union wage setting and unemployment disparities in West Germany," International Economic Journal, Taylor & Francis Journals, vol. 18(1), pages 33-48.
    • Handle: RePEc:taf:intecj:v:18:y:2004:i:1:p:33-48
    DOI: 10.1080/1351161042000180629
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    References listed on IDEAS

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    1. Borjas, George J. & Bronars, Stephen G. & Trejo, Stephen J., 1992. "Self-selection and internal migration in the United States," Journal of Urban Economics, Elsevier, vol. 32(2), pages 159-185, September.
    2. Burda, Michael & Wyplosz, Charles, 1992. "Human capital, investment and migration in an integrated Europe," European Economic Review, Elsevier, vol. 36(2-3), pages 677-684, April.
    3. Robert E. Hall, 1970. "Why Is the Unemployment Rate So High at Full Employment?," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 1(3), pages 369-410.
    4. Pissarides, Christopher A & McMaster, Ian, 1990. "Regional Migration, Wages and Unemployment: Empirical Evidence and Implications for Policy," Oxford Economic Papers, Oxford University Press, vol. 42(4), pages 812-831, October.
    5. Stephen T. Marston, 1985. "Two Views of the Geographic Distribution of Unemployment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 100(1), pages 57-79.
    6. Harris, John R & Todaro, Michael P, 1970. "Migration, Unemployment & Development: A Two-Sector Analysis," American Economic Review, American Economic Association, vol. 60(1), pages 126-142, March.
    Full references (including those not matched with items on IDEAS)

    Citations

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    Cited by:

    1. Timo Mitze, 2012. "Testing the Neoclassical Migration Model: Overall and Age-Group Specific Results for German Regions," Lecture Notes in Economics and Mathematical Systems, in: Empirical Modelling in Regional Science, edition 127, chapter 0, pages 53-82, Springer.
    2. Jens Suedekum, 2005. "Increasing returns and spatial unemployment disparities," Papers in Regional Science, Wiley Blackwell, vol. 84(2), pages 159-181, June.
    3. Monastiriotis, Vassilis & Kaplanis, Ioannis, 2011. "Flexible employment and cross- regional adjustment," Working Papers 2072/179671, Universitat Rovira i Virgili, Department of Economics.
    4. Dorner, Matthias & Görlitz, Katja, 2020. "Training, wages and a missing school graduation cohort," IAB-Discussion Paper 202028, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    5. 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].
    6. repec:zbw:rwirep:0226 is not listed on IDEAS
    7. Suedekum, Jens & Blien, Uwe, 2004. "Wages and Employment Growth: Disaggregated Evidence for West Germany," IZA Discussion Papers 1128, Institute of Labor Economics (IZA).
    8. Timo Mitze & Janina Reinkowski, 2010. "Testing the Neoclassical Migration Model: Overall and Age-Group Specific Results for German Regions," Ruhr Economic Papers 0226, Rheinisch-Westfälisches Institut für Wirtschaftsforschung, Ruhr-Universität Bochum, Universität Dortmund, Universität Duisburg-Essen.

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    More about this item

    Keywords

    Regional unemployment; internal migration; collective bargaining;
    All these keywords.

    JEL classification:

    • J6 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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