Wednesday, 27 February 2013

Effects of Regional Labour Markets on Migration Flows, by Education Level

an article by Fredrik Carlsen, Kåre Johansen and Lasse Sigbjørn Stambø ( Norwegian University of Science and Technology, Trondheim) published in LABOUR Volume 27 Issue 1 (March 2013)


European economies display large variations in unemployment rates across regions as well as between education groups.

Insufficient labour mobility is widely believed to contribute to higher regional disparities and overall unemployment, but few studies have compared mobility responses of different education groups to regional shocks.

This paper employs administrative registers covering the entire Norwegian population to compute annual time series from 1994 to 2004 of migration flows and regional labour market conditions by education level for 90 travel-to-work areas.

We find that regional disparities in unemployment rates are decreasing in education level, whereas the response of migration flows to regional unemployment shocks is increasing in education level.

The results suggest that low regional mobility of low-educated workers may contribute to higher regional disparities and higher overall unemployment among the low educated.

JEL classifications: J61, R23

Hazel’s comment:
Statistical proof of what those of us working at the coal-face already knew. The lower the level of education the lower the income and, therefore, nearer to home for work is essential!
Commute to London from Nottingham for a well-paid job but not to be a cleaner or a retail assistant.

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