What Attracts Human Capital? Understanding the Skill Composition of Interregional Job Matches in Germany


Arntz, Melanie


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URL: http://ub-madoc.bib.uni-mannheim.de/1446
URN: urn:nbn:de:bsz:180-madoc-14464
Document Type: Working paper
Year of publication: 2006
The title of a journal, publication series: None
Publication language: English
Institution: Sonstige Einrichtungen > ZEW - Leibniz-Zentrum für Europäische Wirtschaftsforschung
MADOC publication series: Veröffentlichungen des ZEW (Leibniz-Zentrum für Europäische Wirtschaftsforschung) > ZEW Discussion Papers
Subject: 330 Economics
Classification: JEL: C35 J61 R23 ,
Subject headings (SWD): Regionaler Arbeitsmarkt , Humankapital , Wettbewerb , Deutschland , Regionalwirtschaft
Keywords (English): interregional job matches , destination choice , human capital
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.




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