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Why Are Educated and Risk-Loving Persons More Mobile Across Regions?

Author

Listed:
  • Bauernschuster, Stefan

    (University of Passau)

  • Falck, Oliver

    (Ifo Institute for Economic Research)

  • Heblich, Stephan

    (University of Toronto)

  • Suedekum, Jens

    (Heinrich Heine University Düsseldorf)

Abstract

Why are better educated and more risk-friendly persons more mobile across regions? To answer this question, we use micro data on internal migrants from the German Socio- Economic Panel (SOEP) 2000-2006 and merge this information with a unique proxy for region-pair-specific cultural distances across German regions constructed from historical local dialect patterns. Our findings indicate that risk-loving and skilled people are more mobile over longer distances because they are more willing to cross cultural boundaries and move to regions that are culturally different from their homes. Other types of distance-related migration costs cannot explain the lower distance sensitivity of educated and risk-loving individuals.

Suggested Citation

  • Bauernschuster, Stefan & Falck, Oliver & Heblich, Stephan & Suedekum, Jens, 2012. "Why Are Educated and Risk-Loving Persons More Mobile Across Regions?," IZA Discussion Papers 6860, Institute of Labor Economics (IZA).
    • Handle: RePEc:iza:izadps:dp6860
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    More about this item

    Keywords

    human capital; distance; culture; migration; risk attitudes;
    All these keywords.

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • D81 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Criteria for Decision-Making under Risk and Uncertainty

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