Why Are East Germans Not More Mobile?: Analyzing the Impact of Local Networks on Migration Intentions

Peter Bönisch and Lutz Schneider

No 334, SOEPpapers on Multidisciplinary Panel Data Research from DIW Berlin, The German Socio-Economic Panel (SOEP)

Abstract: Despite poor regional labour market conditions East Germans exhibit a rather limited willing-ness of leaving their home region. Applying an IV ordered probit approach and using the German Socio Economic Panel (SOEP), we test a local network explanation of lower spatial mobility. Firstly, we find that membership in locally bounded social networks reduces regional mobility. Secondly, we show that native East Germans are more invested in this type of social networks than West Germans. Thirdly, after controlling for the social network effect the mobility gap between East and West substantially reduces. Thus, low regional labour mobility of East Germans is for a significant part attributable to local ties binding people to their home region.

Keywords: Social networks; labour mobility (search for similar items in EconPapers)
JEL-codes: J61 R23 Z13 (search for similar items in EconPapers)
Pages: 26 p.
Date: 2010
New Economics Papers: this item is included in nep-geo, nep-ltv, nep-mig, nep-soc and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

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Persistent link: https://EconPapers.repec.org/RePEc:diw:diwsop:diw_sp334

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