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

Anzelika Zaiceva

No 580, Discussion Papers of DIW Berlin from DIW Berlin, German Institute for Economic Research

Abstract: This paper investigates the causal effect of geographic labour 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 migration premium is insignificantly different from zero, the returns for commuters equal to four percent of the mean of the total income, and the local average treatment effects for compliers are insignificant. In addition, estimation results suggest no positive self-selection for migrants, and some evidence of positive self-selection for commuters. Based on these results, moving West does not appear to be a highly rewarded option in Germany.

Keywords: returns to geographic mobility; causality; treatment effects (search for similar items in EconPapers)
JEL-codes: F22 J61 J62 R23 (search for similar items in EconPapers)
Pages: 39 p.
Date: 2006
New Economics Papers: this item is included in nep-geo
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Citations: View citations in EconPapers (7)

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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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