Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/24517
Authors: 
Arntz, Melanie
Year of Publication: 
2006
Series/Report no.: 
ZEW Discussion Papers 06-62
Abstract: 
By examining the destination choice patterns of heterogenous labor, this paper tries to explain the skill composition of internal job matching flows in Germany. Estimates from a nested logit model of destination choice suggest that spatial job matching patterns by high-skilled individuals are mainly driven by interregional income differentials, while interregional job matches by less-skilled individuals are much more affected by regional differentials in job opportunities. Regional differentials in non-pecuniary assets slightly contribute to spatial sorting processes in Germany. Such differences in destination choices by skill level are partly modified by different spatial patterns of job-to-job matches and job matches after unemployment. Simulating job matching patterns in a scenario of economic convergence between eastern and western Germany demonstrates that wage convergence is the most effective means of attracting human capital to eastern Germany.
Subjects: 
interregional job matches
destination choice
human capital
JEL: 
C35
J61
R23
Document Type: 
Working Paper

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