nep-mig New Economics Papers
on Economics of Human Migration
Issue of 2016‒09‒11
two papers chosen by
Yuji Tamura
La Trobe University

  1. Losing Work, Moving away? Regional Mobility after Job Loss By Daniel Fackler; Lisa Rippe
  2. Interdependent Hazards, Local Interactions, and the Return Decision of Recent Migrants By Govert Bijwaard; Christian Schluter

  1. By: Daniel Fackler; Lisa Rippe
    Abstract: Using German survey data, we investigate the relationship between involuntary job loss and regional mobility. Our results show that job loss has a strong positive effect on the propensity to relocate. We also analyze whether the high and persistent earnings losses of displaced workers can in part be explained by limited regional mobility. Applying an event study approach, which controls for worker fixed effects, our findings do not support this conjecture as we find substantial long lasting earnings losses for both movers and stayers. In the short run, movers even face slightly higher losses, but the differences between the two groups of displaced workers are never statistically significant. This challenges whether migration is a beneficial strategy in case of involuntary job loss.
    Keywords: job displacement, plant closure, regional mobility, earnings, SOEP
    JEL: J61 J63
    Date: 2016
  2. By: Govert Bijwaard (Netherlands Interdisciplinary Demographic Institute); Christian Schluter (Centre de la Vieille Charite)
    Abstract: Consider the duration of stay of migrants in a host country. We propose a statistical model of locally interdependent hazards in order to examine whether interactions at the level of the neighbourhood are present and lead to social multipliers. To this end, we propose and study a new two-stage estimation strategy based on an inverted linear rank test statistic. Using a unique large administrative panel dataset for the population of recent labour immigrants to the Netherlands, we quantify the local social multipliers in several factual and counterfactual experiments, and demonstrate that these can be substantial.
    Keywords: interdependent hazards, local interaction, social multipliers, return migration
    JEL: C41 C10 C31 J61
    Date: 2016–08

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