IDEAS home Printed from https://ideas.repec.org/p/zbw/hwwadp/26310.html
   My bibliography  Save this paper

Why do people stay? Insider advantages and immobility

Author

Listed:
  • 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.

Suggested Citation

  • Fischer, Peter A. & Holm, Einar & Malmberg, Gunnar & Straubhaar, Thomas, 2000. "Why do people stay? Insider advantages and immobility," HWWA Discussion Papers 112, Hamburg Institute of International Economics (HWWA).
    • Handle: RePEc:zbw:hwwadp:26310
    as

    Download full text from publisher

    File URL: https://www.econstor.eu/bitstream/10419/19439/1/112.pdf
    Download Restriction: no
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. Oded Stark & Christian Helmenstein & Yury Yegorov, 1997. "Migrants' Savings, Purchasing Power Parity, and the Optimal Duration of Migration," International Tax and Public Finance, Springer;International Institute of Public Finance, vol. 4(3), pages 307-324, July.
    2. Decressin, Jorg & Fatas, Antonio, 1995. "Regional labor market dynamics in Europe," European Economic Review, Elsevier, vol. 39(9), pages 1627-1655, December.
    3. Masson,Paul R. & Taylor,Mark P. (ed.), 1993. "Policy Issues in the Operation of Currency Unions," Cambridge Books, Cambridge University Press, number 9780521434553, January.
    4. Gary S. Becker, 1962. "Investment in Human Capital: A Theoretical Analysis," NBER Chapters, in: Investment in Human Beings, pages 9-49, National Bureau of Economic Research, Inc.
    5. Burda, Michael C, 1995. "Migration and the Option Value of Waiting," CEPR Discussion Papers 1229, C.E.P.R. Discussion Papers.
    6. Maurice Obstfeld & Giovanni Peri, 1998. "Regional non-adjustment and fiscal policy," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 13(26), pages 206-259.
    7. Stark, Oded & Bloom, David E, 1985. "The New Economics of Labor Migration," American Economic Review, American Economic Association, vol. 75(2), pages 173-178, May.
    8. George J. Borjas, 2021. "Assimilation, Changes in Cohort Quality, and the Earnings of Immigrants," World Scientific Book Chapters, in: Foundational Essays in Immigration Economics, chapter 2, pages 3-29, World Scientific Publishing Co. Pte. Ltd..
    9. Friedberg, Rachel M, 2000. "You Can't Take It with You? Immigrant Assimilation and the Portability of Human Capital," Journal of Labor Economics, University of Chicago Press, vol. 18(2), pages 221-251, April.
    10. Lindbeck, A. & Snower, D.J., 1992. "Patterns of Unemployment : An Insider-Outsider Analysis," Papers 520, Stockholm - International Economic Studies.
    11. Amemiya, Takeshi, 1981. "Qualitative Response Models: A Survey," Journal of Economic Literature, American Economic Association, vol. 19(4), pages 1483-1536, December.
    12. I R Gordon & I Molho, 1995. "Duration Dependence in Migration Behaviour: Cumulative Inertia versus Stochastic Change," Environment and Planning A, , vol. 27(12), pages 1961-1975, December.
    13. Eichengreen, Barry, 1993. "European Monetary Unification," Journal of Economic Literature, American Economic Association, vol. 31(3), pages 1321-1357, September.
    14. Davidson, Russell & MacKinnon, James G., 1993. "Estimation and Inference in Econometrics," OUP Catalogue, Oxford University Press, number 9780195060119.
    15. Laitila, Thomas, 1993. "A pseudo-R2 measure for limited and qualitative dependent variable models," Journal of Econometrics, Elsevier, vol. 56(3), pages 341-355, April.
    16. Bentolila, Samuel & Jimeno, Juan F, 1995. "Regional Unemployment Persistence (Spain, 1976-94)," CEPR Discussion Papers 1259, C.E.P.R. Discussion Papers.
    17. Faini, Riccardo & Galli, Giampaolo & Gennari, Pietro & Rossi, Fulvio, 1997. "An empirical puzzle: Falling migration and growing unemployment differentials among Italian regions," European Economic Review, Elsevier, vol. 41(3-5), pages 571-579, April.
    18. Ghatak, Subrata & Levine, Paul & Price, Stephen Wheatley, 1996. "Migration Theories and Evidence: An Assessment," Journal of Economic Surveys, Wiley Blackwell, vol. 10(2), pages 159-198, June.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    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.
    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.
    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.
    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.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Fidrmuc, Jan, 2001. "Migration and adjustment to shocks in transition economies," ZEI Working Papers B 23-2001, University of Bonn, ZEI - Center for European Integration Studies.
    2. Fidrmuc, Jan, 2004. "Migration and regional adjustment to asymmetric shocks in transition economies," Journal of Comparative Economics, Elsevier, vol. 32(2), pages 230-247, June.
    3. Jan Fidrmuc, 2002. "Migration and Regional Adjustment and Asymmetric Shocks in Transition Economies," William Davidson Institute Working Papers Series 441, William Davidson Institute at the University of Michigan.
    4. Fredrik Carlsen & Kåre Johansen & Knut RØed, 2006. "Wage Formation, Regional Migration and Local Labour Market Tightness," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 68(4), pages 423-444, August.
    5. Iulia Siedschlag, 2008. "Macroeconomic Differentials and Adjustment in the Euro Area," SUERF Studies, SUERF - The European Money and Finance Forum, number 2008/3 edited by Morten Balling, May.
    6. Puga, Diego, 1999. "The rise and fall of regional inequalities," European Economic Review, Elsevier, vol. 43(2), pages 303-334, February.
    7. Paolo Epifani, 1998. "Globalization and Regional Unemployment Divergence in the EU Countries," LIUC Papers in Economics 59, Cattaneo University (LIUC).
    8. Picard, Pierre M. & Toulemonde, Eric, 2006. "Firms agglomeration and unions," European Economic Review, Elsevier, vol. 50(3), pages 669-694, April.
    9. Sergio Vergalli, 2011. "Entry and Exit Strategies in Migration Dynamics," Journal of Labor Research, Springer, vol. 32(4), pages 362-389, December.
    10. Florence Huart & Médédé Tchakpalla, 2019. "Labor Market Conditions and Geographic Mobility in the Eurozone," Comparative Economic Studies, Palgrave Macmillan;Association for Comparative Economic Studies, vol. 61(2), pages 263-284, June.
    11. G Ottaviano & Diego Puga, 1997. "Agglomeration in a global Economy: A Survey," CEP Discussion Papers dp0356, Centre for Economic Performance, LSE.
    12. De Grauwe, Paul & Piskorski, Tomasz, 2001. "Union-wide Aggregates versus National Data Based Monetary Policies: Does it Matter for the Eurosystem?," CEPR Discussion Papers 3036, C.E.P.R. Discussion Papers.
    13. Mark Partridge & Dan Rickman, 2010. "Computable General Equilibrium (CGE) Modelling for Regional Economic Development Analysis," Regional Studies, Taylor & Francis Journals, vol. 44(10), pages 1311-1328.
    14. Angelini, E. & Dieppe, A. & Pierluigi, B., 2015. "Modelling internal devaluation experiences in Europe: Rational or learning agents?," Journal of Macroeconomics, Elsevier, vol. 43(C), pages 81-92.
    15. Matteo Lanzafame, 2010. "The nature of regional unemployment in Italy," Empirical Economics, Springer, vol. 39(3), pages 877-895, December.
    16. Štaube Tatjana & Geipele Ineta, 2017. "Scientific Aspects of Spatial Economic Allocation of Entrepreneurial Activities," Baltic Journal of Real Estate Economics and Construction Management, Sciendo, vol. 5(1), pages 76-100, November.
    17. Stéphane Riou, 2003. "Géographie, croissance et politique de cohésion en Europe," Revue Française d'Économie, Programme National Persée, vol. 17(3), pages 171-220.
    18. Fredriksson, Peter, 1999. "The Dynamics of Regional Labor Markets and Active Labor Market Policy: Swedish Evidence," Oxford Economic Papers, Oxford University Press, vol. 51(4), pages 623-648, October.
    19. Romano Piras, 2017. "A long-run analysis of push and pull factors of internal migration in Italy. Estimation of a gravity model with human capital using homogeneous and heterogeneous approaches," Papers in Regional Science, Wiley Blackwell, vol. 96(3), pages 571-602, August.
    20. Peter Huber, 2004. "Inter-regional mobility in Europe: a note on the cross-country evidence," Applied Economics Letters, Taylor & Francis Journals, vol. 11(10), pages 619-624.

    More about this item

    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

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:zbw:hwwadp:26310. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: ZBW - Leibniz Information Centre for Economics (email available below). General contact details of provider: https://edirc.repec.org/data/hwwaade.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.