Self-Selection and the Returns to Geographic Mobility: What Can Be Learned from the German Reunification "Experiment"

Anzelika Zaiceva

No 2524, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper investigates the causal effect of geographic mobility on income. The returns to German East-West migration and commuting are estimated, exploiting the structure of centrally planned economies and a "natural experiment" of German reunification for identification. I find that the migration premium is insignificantly different from zero, the returns for commuters equal to 40 per cent, and the local average treatment effects for compliers are insignificant. In addition, estimation results suggest no positive self-selection on unobservables for migrants, and some evidence of positive self-selection on unobservables for commuters.

Keywords: causality; returns to migration; treatment effects (search for similar items in EconPapers)
JEL-codes: F22 J61 R23 (search for similar items in EconPapers)
Pages: 31 pages
Date: 2006-12
New Economics Papers: this item is included in nep-eec, nep-geo, nep-lab and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6)

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Related works:
Working Paper: Self-Selection and the Returns to Geographic Mobility: What Can Be Learned from the German Reunification "Experiment" (2006)
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