Arbeitspapier

The more the merrier? Migration and convergence among European regions

Using a spatial systems estimator to incorporate spatial interactions and endogeneity of income levels and migration, this paper finds a positive effect of migration on cohesion within the European Union on the NUTS 2 level. As migration can generally be observed from low to high income regions, growth rates of income per worker tend to decrease in regions experiencing net immigration, while lagging regions experience higher speeds of income convergence. As a result, migration increases sigma-convergence. Results show an increase of more than one third. Free movement of persons also proves to increase efficiency, displayed by higher average convergence speeds.

Language
Englisch

Bibliographic citation
Series: Working Papers in Economics and Statistics ; No. 2015-08

Classification
Wirtschaft
Regional Economic Activity: Growth, Development, Environmental Issues, and Changes
Multiple or Simultaneous Equation Models: Cross-Sectional Models; Spatial Models; Treatment Effect Models; Quantile Regressions; Social Interaction Models
Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence
Subject
Conditional spatial beta- and sigma-convergence
Migration
Spatial Solow model
European regions

Event
Geistige Schöpfung
(who)
Fischer, Lorenz B.
Pfaffermayr, Michael
Event
Veröffentlichung
(who)
University of Innsbruck, Research Platform Empirical and Experimental Economics (eeecon)
(where)
Innsbruck
(when)
2015

Handle
Last update
12.07.2024, 1:22 PM CEST

Object type

  • Arbeitspapier

Associated

  • Fischer, Lorenz B.
  • Pfaffermayr, Michael
  • University of Innsbruck, Research Platform Empirical and Experimental Economics (eeecon)

Time of origin

  • 2015

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