Selective migration, union wage setting and unemployment disparities in West Germany

Jens Suedekum

International Economic Journal, 2004, vol. 18, issue 1, 33-48

Abstract: There are wide and persistent disparities between regional unemployment rates in West Germany. Furthermore, regions with high unemployment tend to have relatively low effective wages and vice versa. Internal migration is driven by these spatial disparities. However, mobility will not work as an adjustment mechanism, but rather perpetuate regional imbalances if there is a skill bias within the group of internal migrants. JEL Classification: J6, R11

Keywords: Regional unemployment; internal migration; collective bargaining (search for similar items in EconPapers)
Date: 2004
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DOI: 10.1080/1351161042000180629

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