Differences in regional labour market conditions are still pronounced in Germany, especially between the Eastern and Western parts. Traditional neoclassical models imply that labour mobility should reduce such disparities. In contrast, models that include externalities or selective migration suggest that regional differences may well increase due to the interregional migration of workers. The impact of labour mobility on regional disparities in Germany between 1995 and 2005 is investigated. Considering migration as well as commuting, effects on regional wages and unemployment are estimated. The results suggest that labour mobility tends to reduce disparities; however, significant effects on unemployment disparities only are found.
Dieser Eintrag ist Teil der Universitätsbibliographie.
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