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

Bibliographic Data

ID10408303
AuthorsMelanie Arntz (Centre for European Economic Research), Terry Gregory (0000-0001-5334-1667, Centre for European Economic Research, corresponding author), Florian Lehmer (Institut für Arbeitsmarkt und Berufsforschung)
Year2014
Volume48
Issue10
Pages1719-1738
Publication date2014-03-10
Peer ReviewedYes
Open AccessNo
TypeARTICLE
VenueRegional Studies (JOURNAL)
Journal identifiersISSN: 0034-3404 • E-ISSN: 1360-0591
PublisherRoutledge (PUBLISHER • GB)
DOI10.1080/00343404.2014.882500
OpenAlexW1992101962
LanguageEN
Citations received15
References cited50

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

Context (archaeology · Demographic economics · Economic growth · Economics · Estimation · Geography · Human capital · Inequality · Labour economics · Sorting · Unemployment · Wage · Wage Inequality · Economic Growth and Productivity · Mathematics · Regional Development and Policy · Regional Economics and Spatial Analysis

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