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Does it pay to move? Returns to regional mobility at the start of the career for tertiary education graduates

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  • Maier, Michael F.
  • Sprietsma, Maresa

Abstract

Decisions taken at the start of one's career have long-term consequences and one important decision graduates have to make is whether to be regionally mobile when looking for the first job. We investigate whether being regionally mobile for the first job following graduation rather than to stay in the place of graduation pays off. Existing research on regional mobility mostly focuses on job-to-job mobility. We analyse the determinants of early career mobility and estimate a bivariate probit model to account for the dependency between the migration decisions for tertiary education and for the first job. In order to account for self-selection with respect to migration decisions, we exploit variation in the availability of university places at the regional level. Our results show that there is significant dependency between migration decisions made before and after tertiary education. Secondly, using an IV estimation strategy, we find significantly positive wage returns to regional mobility for the first job.

Suggested Citation

  • 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.
    • Handle: RePEc:zbw:zewdip:16060
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    Cited by:

    1. Chantal Oggenfuss & Stefan C. Wolter, 2019. "Are they coming back? The mobility of university graduates in switzerland [Kehren sie Zurück? Die Mobilität von Hochschulabsolventinnen und -Absolventen in der Schweiz]," Review of Regional Research: Jahrbuch für Regionalwissenschaft, Springer;Gesellschaft für Regionalforschung (GfR), vol. 39(2), pages 189-208, October.

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    More about this item

    Keywords

    regional mobility; wages; university education; early career;
    All these keywords.

    JEL classification:

    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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