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Group-specific effects of interregional mobility on earnings - a microdata analysis for Germany

[journal article]

Lehmer, Florian; Möller, Joachim

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Abstract The paper analyses the relationship between regional mobility and earnings for different groups of workers. Using a large panel microdata set we find negative earnings differentials of movers in the year before migration and strong evidence for significant wage gains through mobility. A decomposition of Blinder/ Oaxaca type reveals different group-specific rewards effects suggesting a positive post-mobility wage differential of movers over the incumbent workforce for some groups irrespective of the region of destination. The existence of a general wage growth effect of mobility appears to be robust and cannot be explained by the time-invariant part of unobserved heterogeneity.
Classification Political Economy; Employment Research
Free Keywords inter-regional mobility; migration wage differentials; unobserved heterogeneity; propensity score matching
Document language English
Publication Year 2008
Page/Pages p. 657-673
Journal Regional Studies, 42 (2008) 5
Status Postprint; peer reviewed
Licence PEER Licence Agreement (applicable only to documents from PEER project)