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Decomposing the Returns to Regional Mobility

Rebecca Fehn and Hanna Frings

VfS Annual Conference 2018 (Freiburg, Breisgau): Digital Economy from Verein für Socialpolitik / German Economic Association

Abstract: This paper studies the returns to regional mobility based on a sample of job-to-job transitions in Germany. Additionally, we provide evidence for the selection mechanisms into regional mobility and sorting into firms and matches. Using linked employer-employee data we estimate a wage decomposition including individual, firm and match fixed effects. Our (preliminary) results suggest a wage level increase of 28% for regionally mobile individuals, whereas workers making a job-to-job transition in their local labor market region experience an increase of 24%. Further, workers generally experience a move to higher paying firms, whereas this effect is smallest for regionally mobile workers. In addition, workers find relatively better matches due to the job-to-job transition; with regionally mobile workers benefiting most form this increase in match quality.

Keywords: regional mobility; wage growth; job-to-job transitions; firm effects; match effects (search for similar items in EconPapers)
JEL-codes: J31 J62 R23 (search for similar items in EconPapers)
Date: 2018
New Economics Papers: this item is included in nep-eur, nep-geo and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:vfsc18:181609

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