Does it pay to move? Returns to regional mobility at the start of the career for tertiary education graduates


Maier, Michael F. ; Sprietsma, Maresa


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URL: https://ub-madoc.bib.uni-mannheim.de/41443
URN: urn:nbn:de:bsz:180-madoc-414431
Document Type: Working paper
Year of publication: 2016
The title of a journal, publication series: ZEW Discussion Papers
Volume: 16-060
Place of publication: Mannheim
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: J31 , J61,
Keywords (English): Regional mobility , wages , university education , early career
Abstract: Decisions taken at the start of one’s career have long-term consequences and one important decision graduates have to make is whether to be regionally mobile when looking for the first job. We investigate whether being regionally mobile for the first job following graduation rather than to stay in the place of graduation pays off. Existing research on regional mobility mostly focuses on job-to-job mobility. We analyse the determinants of early career mobility and estimate a bivariate probit model to account for the dependency between the migration decisions for tertiary education and for the first job. In order to account for self-selection with respect to migration decisions, we exploit variation in the availability of university places at the regional level. Our results show that there is significant dependency between migration decisions made before and after tertiary education. Secondly, using an IV estimation strategy, we find significantly positive wage returns to regional mobility for the first job.

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Maier, Michael F. ; Sprietsma, Maresa (2016) Does it pay to move? Returns to regional mobility at the start of the career for tertiary education graduates. Open Access ZEW Discussion Papers Mannheim 16-060 [Working paper]
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