Internal migration dynamics of native and foreign workers: an impulse–response analysis of perturbation and resilience by means of a spatial vector autoregressive model

Masood Gheasi, Bo Pieter Johannes Andrée, Peter Nijkamp and Duncan Roth

Regional Studies, 2023, vol. 57, issue 12, 2473-2490

Abstract: Why are certain labour markets more resilient to economic shocks? Why are some economies deeply affected by migration? Modern migration theory remains based on simplistic neo-classical utility maximizing assumptions, despite a failure to fully answer real-world migration questions. The aim of this paper is to show that neo-classical dynamics are differentiated between subpopulations that make up the workforce. Using disaggregated data from Germany and a dynamic spatial vector autoregressive model that allows for spillovers, the paper teases out several aspects of regional labour market resilience. Results highlight that regions stand to benefit from supporting place-specific policies tailored to local circumstances.

Date: 2023
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DOI: 10.1080/00343404.2023.2180144

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