Resource title

Employment Status, Endogenous Regional Mobility, and Spatial Dependencies in Labor Markets

Resource image

image for OpenScout resource :: Employment Status, Endogenous Regional Mobility, and Spatial Dependencies in Labor Markets

Resource description

This paper investigates spatial correlation in the matching process of vacant jobs and job seekers. The importance of the interactions of regional labor markets in West Germany is highlighted in several dimensions. We test for spatial autocorrelation in regional hires, unemployment and vacancy levels, we examine the patterns of new matches in regions, identify clusters of regions of particularly intense interregional matching, and examine the effects of German re-unification. After setting-out a simple model of endogenous regional mobility and endogenous on-the-job search, we analyze the composition of new hires with respect to regional origin and previous employment status, the determinants of this composition, and the interaction of these characteristics. The results shed new light on the puzzle raised in the literature, which finds a large variation in unemployment rates, combined with little inter-regional migration. We find evidence in favor of labor market determined migration and against the ?internal migration puzzle? found for other European countries and partly for the United States.

Resource author

René Fahr, Uwe Sunde

Resource publisher

Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/21396

Resource license

Adapt according to the presented license agreement and reference the original author.