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The more the merrier? Migration and convergence among European regions

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  • Fischer, Lorenz Benedikt
  • Pfaffermayr, Michael
Abstract
A spatial system of equations for regional income growth and migration allows to identify the impact of migration on regional income convergence despite the dependence of migration rates on initial income per worker. Using a spatial systems estimator, we find a significant positive effect of migration on income convergence within the European Union on the NUTS 2 level. As migration is generally observed from low to high income regions, growth rates of income per worker tend to decrease in regions experiencing net immigration, while lagging regions experience higher speeds of income convergence due to net emigration. As a consequence, migration increases σ-convergence by about 0.45 percentage points.

Suggested Citation

  • Fischer, Lorenz Benedikt & Pfaffermayr, Michael, 2018. "The more the merrier? Migration and convergence among European regions," Regional Science and Urban Economics, Elsevier, vol. 72(C), pages 103-114.
    • Handle: RePEc:eee:regeco:v:72:y:2018:i:c:p:103-114
    DOI: 10.1016/j.regsciurbeco.2017.04.007
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    More about this item

    Keywords

    Conditional spatial β- and σ-convergence; Migration; European regions; Regional convergence; Beta- and sigma-convergence; Solow model JEL;
    All these keywords.

    JEL classification:

    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
    • C31 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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