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Why do People Stay? Insider Advantages and Immobility

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  • Fischer, Peter A.
  • Holm, Einar
  • Malmberg, Gunnar
  • Straubhaar, Thomas

Abstract

The low mobility of people in Europe is considered a problem for adjustment to asymmetric shocks and regional convergence in the European Monetary Union. We suggest a complement to the traditional migration theories, the insider advantages approach to explain why most Europeans prefer to stay. Staying immobile they have accumulated work- and leisure-oriented insider advantages that are location-specific and would be lost in the case of emigration. Therefore, the longer people have stayed - and the more insider advantages they have accumulated -, the less likely they are to move. Using a new micro dataset covering all people resident in Sweden in 1994 and their mobility experience since 1985, we find a strong positive duration dependence of the probability to stay. Traditional micro-economic characteristics prove helpful in explaining immobility, while regional macro-economic differences have surprisingly little impact on individual mobility decisions. A large proportion of the moves between Swedish labour markets seem to be related to specific life-course events rather than to pure labour market issues. Wieso ist die Mobilität der Arbeitskräfte innerhalb der Europäischen Union - aller Freizügigkeit zum Trotz - so gering? Traditionelle Theorieansätze vermögen die schwach ausgeprägte Wanderungsintensität der EU-Angehörigen nur begrenzt zu er - klären. Denn eigentlich sollten die teilweise beträchtlichen Einkommens - und Beschäftigungsunterschiede zu weit mehr Migration innerhalb der EU führen. In diesem Diskussionspapier entwickeln wir eine Idee, die sehr wohl zu erklären vermag, weshalb für die meisten Menschen "stehen" die bessere Alternative als "gehen" ist. Der Insider-Ansatz macht deutlich, weshalb für die individuelle Entscheidung eine grenz- und kulturraumüberschreitende Wanderung die Ausnahme und nicht die Regel ist. Die empirische Überprüfung mit Hilfe eines neuen originären Mikro-Datensets, das die gesamte schwedische Wohnbevölkerung enthält, bestätigt die These, dass die Verweil- dauer einen direkten positiven Einfluss auf die Verharrenswahrscheinlichkeit ausübt. Wer lange an einem Ort lebt, wird immer wahrscheinlicher an diesem Ort bleiben!

Suggested Citation

  • Fischer, Peter A. & Holm, Einar & Malmberg, Gunnar & Straubhaar, Thomas, 2000. "Why do People Stay? Insider Advantages and Immobility," Discussion Paper Series 26310, Hamburg Institute of International Economics.
    • Handle: RePEc:ags:hwwadp:26310
    DOI: 10.22004/ag.econ.26310
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    1. Stephen Drinkwater, 2003. "Go West? Assessing the willingness to move from Central and Eastern European Countries," School of Economics Discussion Papers 0503, School of Economics, University of Surrey.
    2. Tanja El-Cherkeh & Max Steinhardt & Thomas Straubhaar, 2006. "Did the European Free Movement of Persons and Residence Directive Change Migration Patterns within the EU? A First Glance," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 4(4), pages 14-20, 02.
    3. Rephann, Terance & Vencatasawmy, Coomaren, 1999. "Determinants of the Spatial Mobility of Immigrants in Sweden," ERSA conference papers ersa99pa272, European Regional Science Association.
    4. Fackler, Daniel & Rippe, Lisa, 2016. "Losing work, moving away? Regional mobility after job loss," IWH Discussion Papers 26/2016, Halle Institute for Economic Research (IWH).
    5. Anders Boman, 2011. "The Mobility of Immigrants and Natives: Evidence from Internal Migration Following Job Displacement," Regional Studies, Taylor & Francis Journals, vol. 45(3), pages 283-297.
    6. Klaus Nowotny, 2011. "AFLA – Arbeitskräftemobilität und Fachkräftebedarf nach der Liberalisierung des österreichischen Arbeitsmarktes. Migrations- und Pendelpotentiale nach Ende der Übergangsfristen für die Arbeitskräftefr," WIFO Studies, WIFO, number 41563, January.
    7. Kahanec, Martin & Zimmermann, Klaus F., 2008. "Migration in an Enlarged EU: A Challenging Solution?," IZA Discussion Papers 3913, Institute of Labor Economics (IZA).
    8. Daniel Fackler & Lisa Rippe, 2017. "Losing Work, Moving Away? Regional Mobility After Job Loss," LABOUR, CEIS, vol. 31(4), pages 457-479, December.
    9. Klaus Nowotny, 2011. "FAMO – Fachkräftemonitoring. Regelmäßige Erhebung des Angebots und des Bedarfs an Fachkräften in der Grenzregion Ostösterreichs mit der Slowakei. FAMO II: Migrations- und Pendelpotentiale in Wien und ," WIFO Studies, WIFO, number 42872, January.
    10. Maier, Michael F. & Sprietsma, Maresa, 2016. "Does it pay to move? Returns to regional mobility at the start of the career for tertiary education graduates," ZEW Discussion Papers 16-060, ZEW - Leibniz Centre for European Economic Research.
    11. Daniel Fackler & Lisa Rippe, 2016. "Losing Work, Moving away? Regional Mobility after Job Loss," SOEPpapers on Multidisciplinary Panel Data Research 861, DIW Berlin, The German Socio-Economic Panel (SOEP).
    12. Peter Schmidt, 2013. "The EU structural funds as a means to hamper migration," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 33(1), pages 73-99, February.
    13. Clara H Mulder & Gunnar Malmberg, 2014. "Local Ties and Family Migration," Environment and Planning A, , vol. 46(9), pages 2195-2211, September.
    14. repec:ces:ifodic:v:4:y:2006:i:4:p:14567434 is not listed on IDEAS
    15. Peter Huber & Klaus Nowotny, 2013. "Moving across Borders: Who is Willing to Migrate or to Commute?," Regional Studies, Taylor & Francis Journals, vol. 47(9), pages 1462-1481, October.
    16. Klaus Nowotny & Robert Hierländer, 2009. "FAMO – Fachkräftemonitoring. Regelmäßige Erhebung des Angebots und des Bedarfs an Fachkräften in der Grenzregion Ostösterreichs mit der Slowakei. FAMO I: Migrations- und Pendelpotentiale in Wien und d," WIFO Studies, WIFO, number 37422, January.
    17. Tanja El-Cherkeh & Max Steinhardt & Thomas Straubhaar, 2006. "Did the European Free Movement of Persons and Residence Directive Change Migration Patterns within the EU? A First Glance," ifo DICE Report, ifo Institute - Leibniz Institute for Economic Research at the University of Munich, vol. 4(04), pages 14-20, February.

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    More about this item

    Keywords

    Labor and Human Capital;

    JEL classification:

    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • J60 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - General
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration

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