Education, unemployment and migration

Wolfgang Eggert, Tim Krieger and Volker Meier

Munich Reprints in Economics from University of Munich, Department of Economics

Abstract: This paper studies a two-region model in which unemployment, education decisions and interregional migration are endogenous. The poorer region exhibits both lower wages and higher unemployment rates, and migrants to the richer region are disproportionally skilled. The brain drain from the poor to the rich region is accompanied by stronger incentives to acquire skills even for immobile workers. Regional shocks tend to affect both regions in a symmetric fashion, and skill-biased technological change reduces wages of the unskilled. Both education and migration decisions are distorted by a uniform unemployment compensation, which justifies a corrective subsidization.

Date: 2010
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Published in Journal of Public Economics 5-6 94(2010): pp. 354-362

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Related works:
Journal Article: Education, unemployment and migration (2010)
Working Paper: Education, unemployment and migration (2009)
Working Paper: Education, unemployment and migration (2009)
Working Paper: Education, Unemployment and Migration (2007)
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Persistent link: https://EconPapers.repec.org/RePEc:lmu:muenar:20561

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