Arbeitspapier
The Cost of Migrating to a Culturally Different Location
Ever since Sjaastad (1962), researchers have struggled to quantify the psychic cost of migration. We monetize psychic cost as the wage premium for moving to a culturally different location. We combine administrative social security panel data with a proxy for cultural difference based on historical dialect dissimilarity between German counties. Conditional on geographic distance and pre-migration wage profiles, we find that migrants demand a (indexed with respect to local rents) wage premium of about 1 (1.5) percent for overcoming one standard deviation in cultural dissimilarity. The effect is driven by males, more pronounced for geographically short moves, and persistent over time.
- Language
-
Englisch
- Bibliographic citation
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Series: CESifo Working Paper ; No. 4992
- Classification
-
Wirtschaft
Exchange and Production Economies
Geographic Labor Mobility; Immigrant Workers
Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics
- Subject
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migration costs
culture
internal migration
psychic cost
- Event
-
Geistige Schöpfung
- (who)
-
Falck, Oliver
Lameli, Alfred
Ruhose, Jens
- Event
-
Veröffentlichung
- (who)
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Center for Economic Studies and ifo Institute (CESifo)
- (where)
-
Munich
- (when)
-
2014
- Handle
- Last update
-
10.03.2025, 11:43 AM CET
Data provider
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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Falck, Oliver
- Lameli, Alfred
- Ruhose, Jens
- Center for Economic Studies and ifo Institute (CESifo)
Time of origin
- 2014
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