Can Regional Employment Disparities Explain the Allocation of Human Capital Across Space?

Arntz M, Gregory T, Lehmer F (2014)

Publication Type: Journal article

Publication year: 2014

Journal

Regional Studies Taylor & Francis (Routledge)

Book Volume: 48

Pages Range: 1719-1738

Journal Issue: 10

DOI: 10.1080/00343404.2014.882500

Abstract

Arntz M., Gregory T. and Lehmer F. Can regional employment disparities explain the allocation of human capital across space, Regional Studies. This paper examines the determinants of skill-selective regional migration in a context where modelling the migration decision as a wage-maximizing process may be insufficient due to persistent employment disparities. Based on a Borjas-type framework it is shown that high-skilled workers are disproportionately attracted to regions with higher mean wages and employment chances as well as higher regional wage and employment inequalities. Estimates from a labour flow fixed-effects model and a general methods of moments (GMM) estimator show that these predictions hold, but only employment disparities induce a robust and significant skill sorting. The paper thus establishes a missing link about why employment disparities may actually be self-reinforcing.

Involved external institutions

Institut für Arbeitsmarkt- und Berufsforschung (IAB) der Bundesagentur für Arbeit (BA) DE Germany (DE) Zentrum für Europäische Wirtschaftsforschung (ZEW) DE Germany (DE)

How to cite

APA:

Arntz, M., Gregory, T., & Lehmer, F. (2014). Can Regional Employment Disparities Explain the Allocation of Human Capital Across Space? Regional Studies, 48(10), 1719-1738. https://doi.org/10.1080/00343404.2014.882500

MLA:

Arntz, Melanie, Terry Gregory, and Florian Lehmer. "Can Regional Employment Disparities Explain the Allocation of Human Capital Across Space?" Regional Studies 48.10 (2014): 1719-1738.

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