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Internal Migration of Natives and Immigrants Following Job Displacement

Author

Listed:
  • Boman, Anders

    (Department of Economics, School of Business, Economics and Law, Göteborg University)

Abstract

In this paper discrete-time duration analysis is used to identify differences in the internal migration of immigrants and natives following job displacement. Human capital theory presents us with two hypotheses. One is based on immigrants having less location specific human capital, reducing the costs of migration and increasing the probability of migration. The other is based on ethnicity, immigrants living in ethnic enclaves will have higher costs to migration out of the enclave, due to the possibility of using country specific human capital within the enclave, reducing the probability of migration. The study is based on all displacements due to plant closure or major cutbacks in Swedish on-going establishments in 1987 and 1988. We follow residence up to 10 years after displacement and control for a wide range of human capital and family variables, as well as for labour market status and previous migratory behaviour. Findings support both of the hypotheses; settlement in enclaves does reduce geographical mobility for non-Nordic foreign born and foreign born are more mobile than native Swedes when enclaves and an extra effect on immigrants from living in a city have been controlled for.

Suggested Citation

  • Boman, Anders, 2006. "Internal Migration of Natives and Immigrants Following Job Displacement," Working Papers in Economics 192, University of Gothenburg, Department of Economics.
    • Handle: RePEc:hhs:gunwpe:0192
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    File URL: http://hdl.handle.net/2077/2729
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    More about this item

    Keywords

    internal migration; ethnic enclaves; displacement; discrete time duration;
    All these keywords.

    JEL classification:

    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings

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