What attracts human capital? Understanding the skill composition of interregional job matches in Germany

Melanie Arntz

No 06-062, ZEW Discussion Papers from ZEW - Leibniz Centre for European Economic Research

Abstract: By examining the destination choice patterns of heterogenous labor, this paper tries to explain the skill composition of internal job matching flows in Germany. Estimates from a nested logit model of destination choice suggest that spatial job matching patterns by high-skilled individuals are mainly driven by interregional income differentials, while interregional job matches by less-skilled individuals are much more affected by regional differentials in job opportunities. Regional differentials in non-pecuniary assets slightly contribute to spatial sorting processes in Germany. Such differences in destination choices by skill level are partly modified by different spatial patterns of job-to-job matches and job matches after unemployment. Simulating job matching patterns in a scenario of economic convergence between eastern and western Germany demonstrates that wage convergence is the most effective means of attracting human capital to eastern Germany.

Keywords: interregional job matches; destination choice; human capital (search for similar items in EconPapers)
JEL-codes: C35 J61 R23 (search for similar items in EconPapers)
Date: 2006
New Economics Papers: this item is included in nep-dcm, nep-geo, nep-hrm, nep-lab and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (7)

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Related works:
Journal Article: What Attracts Human Capital? Understanding the Skill Composition of Interregional Job Matches in Germany (2010)
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:zewdip:5456

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