Education, unemployment and migration

Arbeitspapier

This paper studies a two-region model in which unemployment, education decisions and interregional migration are endogenous. The poorer region exhibits both lower wages and higher unemployment rates, and migrants to the richer region are disproportionally skilled. The brain drain from the poor to the rich region is accompanied by stronger incentives to acquire skills even for immobile workers. Regional shocks tend to affect both regions in a symmetric fashion, and skilled-biased technological change reduces wages of the unskilled. Both education and migration decisions are distorted by a uniform unemployment compensation, which justifies a corrective subsidization.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: CESifo Working Paper ; No. 2119

Classification and Topics

• Classification: Wirtschaft ; Taxation and Subsidies: Externalities; Redistributive Effects; Environmental Taxes and Subsidies ; Education and Research Institutions: General ; Geographic Labor Mobility; Immigrant Workers ; Unemployment: Models, Duration, Incidence, and Job Search ; General Regional Economics (includes Regional Data)
• Subject: education ; unemployment ; interregional migration ; externalities ; brain drain ; Regionale Arbeitslosigkeit ; Bildungsverhalten ; Regionale Arbeitsmobilität ; Brain Drain ; Wohlfahrtseffekt ; Zwei-Regionen-Modell ; Arbeitslosenversicherung ; Theorie

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Eggert, Wolfgang ; Krieger, Tim ; Meier, Volker
• Event: Veröffentlichung
• (who): Center for Economic Studies and ifo Institute (CESifo)
• (where): Munich
• (when): 2007

Further information

• Handle: http://hdl.handle.net/10419/26164
• Last update: 10.03.2025, 11:42 AM CET