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North-North Migration and Agglomeration in the European Union 15

Daniela Costa and Maria Jose Rodriguez

No 2020-07, Working Papers from Banco de México

Abstract: This paper provides evidence on migration of workers within the European Union 15 (EU15), disaggregated by occupation. Using the European Labor Force Survey from 1983-2013, we find that in high-educated occupations, EU15 workers move to EU15 countries where their occupation is relatively more abundant among natives. This is at odds with traditional models of migration. We argue that a different framework is more suitable to analyze migration flows across highly educated high-income countries. In particular, we develop a model with external economies of scale that generates agglomeration of highly educated labor. The main implication of the model is that workers of high-educated occupations migrate to countries that are abundant in labor of their same occupation, in accordance with the data.

Keywords: North-North Migration; Occupation; Agglomeration; European Union (search for similar items in EconPapers)
JEL-codes: F12 F15 F22 E2 (search for similar items in EconPapers)
Date: 2020-06
New Economics Papers: this item is included in nep-mac, nep-mig and nep-ure
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