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Can Regional Employment Disparities Explain the Allocation of Human Capital Across Space?

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  • Melanie Arntz
  • Terry Gregory
  • Florian Lehmer

Abstract

Arntz M., Gregory T. and Lehmer F. Can regional employment disparities explain the allocation of human capital across space, Regional Studies . 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.

Suggested Citation

  • Melanie Arntz & Terry Gregory & Florian Lehmer, 2014. "Can Regional Employment Disparities Explain the Allocation of Human Capital Across Space?," Regional Studies, Taylor & Francis Journals, vol. 48(10), pages 1719-1738, October.
    • Handle: RePEc:taf:regstd:v:48:y:2014:i:10:p:1719-1738
    DOI: 10.1080/00343404.2014.882500
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    Cited by:

    1. Valerio Mendoza, Octasiano Miguel & Borsi, Mihály Tamás & Comim, Flavio, 2022. "Human capital dynamics in China: Evidence from a club convergence approach," Journal of Asian Economics, Elsevier, vol. 79(C).
    2. Terry Gregory & Roberto Patuelli, 2015. "Demographic ageing and the polarization of regions—an exploratory space–time analysis," Environment and Planning A, , vol. 47(5), pages 1192-1210, May.
    3. John V. Winters, 2017. "Do earnings by college major affect graduate migration?," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 59(3), pages 629-649, November.
    4. Sarah McNamara & Guido Neidhoefer & Patrick Lehnert, 2024. "Intergenerational Mobility of Education in Europe: Geographical Patterns, Cohort-Linked Measures, and the Innovation Nexus," Economics of Education Working Paper Series 0211, University of Zurich, Department of Business Administration (IBW).
    5. Paula Prenzel & Simona Iammarino, 2018. "Ageing labour: How does demographic change affect regional human capital?," Papers in Evolutionary Economic Geography (PEEG) 1832, Utrecht University, Department of Human Geography and Spatial Planning, Group Economic Geography, revised Aug 2018.
    6. Emmler, Julian & Fitzenberger, Bernd, 2020. "The role of unemployment and job change when estimating the returns to migration," IAB-Discussion Paper 202037, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
    7. Liepmann, Hannah, 2018. "The impact of a negative labor demand shock on fertility – Evidence from the fall of the Berlin Wall," Labour Economics, Elsevier, vol. 54(C), pages 210-224.
    8. Melanie Arntz & Eduard Brüll & Cäcilia Lipowski, 2023. "Do preferences for urban amenities differ by skill?," Journal of International Economic Law, Oxford University Press, vol. 23(3), pages 541-576.
    9. Brian Fabrègue & Léo J. Portal & Christopher Cockshaw, 2023. "Using smart people to build smarter: How smart cities attract and retain highly skilled workers to drive innovation (Belgium, Denmark, the Netherlands, Poland)," Smart Cities and Regional Development (SCRD) Journal, Smart-EDU Hub, Faculty of Public Administration, National University of Political Studies & Public Administration, vol. 7(1), pages 9-30, March.
    10. Vera Barinova & Sylvie Rochhia & Stepan Zemtsov, 2022. "Attracting highly skilled migrants to the Russian regions," Regional Science Policy & Practice, Wiley Blackwell, vol. 14(1), pages 147-173, February.
    11. Herbst Mikołaj & Kaczmarczyk Paweł & Wójcik Piotr, 2017. "Migration of Graduates Within a Sequential Decision Framework: Evidence from Poland," Central European Economic Journal, Sciendo, vol. 1(48), pages 1-18, November.
    12. Alexander Kubis & Lutz Schneider, 2016. "Regional Migration, Growth and Convergence – A Spatial Dynamic Panel Model of Germany," Regional Studies, Taylor & Francis Journals, vol. 50(11), pages 1789-1803, November.
    13. Michael R. Betz & Mark D. Partridge & Belal Fallah, 2016. "Smart cities and attracting knowledge workers: Which cities attract highly-educated workers in the 21st century?," Papers in Regional Science, Wiley Blackwell, vol. 95(4), pages 819-841, November.
    14. Ugo Fratesi, 2014. "Editorial: The Mobility of High-Skilled Workers - Causes and Consequences," Regional Studies, Taylor & Francis Journals, vol. 48(10), pages 1587-1591, October.
    15. Melanie Arntz & Eduard Brüll & Cäcilia Lipowski, 2023. "Do preferences for urban amenities differ by skill?," Journal of Economic Geography, Oxford University Press, vol. 23(3), pages 541-576.
    16. Emmler, Julian & Fitzenberger, Bernd, 2020. "The Role of Unemployment and Job Change When Estimating the Returns to Migration," IZA Discussion Papers 13740, Institute of Labor Economics (IZA).
    17. Paula Prenzel, 2021. "Are old regions less attractive? Interregional labour migration in a context of population ageing," Papers in Regional Science, Wiley Blackwell, vol. 100(6), pages 1429-1447, December.
    18. Arntz, Melanie & Gregory, Terry, 2014. "What old stagers could teach us: Examining age complementarities in regional innovation systems," ZEW Discussion Papers 14-050, ZEW - Leibniz Centre for European Economic Research.

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