Regional labour migration - Stylized facts for Germany

Mark Trede () and Michael Zimmermann

No 9320, CQE Working Papers from Center for Quantitative Economics (CQE), University of Muenster

Abstract: We present stylized facts of the local German labour markets in a systematic way. Using a large German administrative dataset and newly available regional price level data, we study workers' biographies at the local level. Huge regional variation is documented in: unemployment rates and nominal as well as real wages. The distinction between urban and rural areas plays a substantial role. We show that the real wage gap between East and West Germany still persists 30 years after reunification whereas unemployment rates tend to converge. We investigate monthly worker flows across 328 regions (roughly equivalent to NUTS 3 regions or "Landkreise"). Unemployed workers in depressed regions are less likely to move to a new working place in another region than unemployed workers in prosperous regions. The most (and increasingly) mobile group are unemployed workers in dense and active regions. Employed workers are less willing to move and have procyclical fluctuations in their moving rates.

Keywords: labour mobility; business cycle fluctuations; regional disparities (search for similar items in EconPapers)
JEL-codes: C55 J61 J63 R23 (search for similar items in EconPapers)
Pages: 30 pages
Date: 2020-09
New Economics Papers: this item is included in nep-eur, nep-geo, nep-lab, nep-mig and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:cqe:wpaper:9320

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