MIGRATION OF THE HIGHLY EDUCATED: EVIDENCE FROM RESIDENCE SPELLS OF UNIVERSITY GRADUATES*

ABSTRACT We examine the inter‐regional migration of university graduates from 1991 to 2003 in Finland. The results show that time matters: two‐years before and during the graduation year the hazard rates of migration increase, and then decrease thereafter. Although university graduates are particularly mobile, we find that most of them do not move from their region of studies within 10 years after graduation. The out‐migration, i.e., brain drain, is much higher among graduates in the more peripheral universities than in the growth centers (Helsinki in particular). Migration is also substantially more likely for those studying away from the home region than for those studying at home.     

The Impact of Migration on Wages: Empirical Evidence from French Youth*

Abstract. This paper deals with the impact of migration on wages. We introduce a spatial dimension into the job search framework, so that the agent faces neither the same job offer distribution nor the same search costs when looking for a job inside his local labor market. This is in comparison to the agent searching outside his local labor market, where migration costs are a factor. We estimate wage equations in which we introduce the decision to migrate as a binary choice, and later as a polychotomic choice (stayer/mover from provinces to Paris/mover from provinces to provinces). We find no selection effect for people with low levels of education, and a positive selection effect for highly educated migrants. When we distinguish the migration destination for highly educated from provinces, we find a hierarchical effect, that is, the selection effect is higher for men who migrate to Paris than for those who migrate to other provinces.     

The spatial dimension of internal labor markets

We integrate into a unified framework the spatial and the employment dimensions of worker mobility, tracing workers across firms, across establishments, and across regions. Drawing upon the spatial dimension of internal labor markets in firms with multiple establishments in multiple locations, our results indicate that the contemporaneous wage premium to migration is around 3 percentage points. For the case of job switchers, we find that the return to regional migration is due to access to better jobs at the destination. We also document the existence of an urban premium for same‐employer migrants but for employer changes this premium is driven by selection.     

Highly qualified rural youth: why do young graduates return to their home region?

This paper addresses the motivations underlying migration decision-making in the case of young university graduates returning to their rural home region in Switzerland. Empirical results show the joint role of social ties, living environment, and job opportunities, although the weight given to each of these factors varies between graduates. Some strategies used by the graduates to cope with a limited labour market are furthermore identified. I argue that internal migrations are far from being the sole consequence of labour market conditions and that a greater appreciation of non-economic issues is needed.     

SOME EVIDENCE THAT WOMEN ARE MORE MOBILE THAN MEN: GENDER DIFFERENCES IN U.K. GRADUATE MIGRATION BEHAVIOR

ABSTRACT.  In this paper we employ dichotomous, multinomial and conditional logit models to analyze the employment-migration behavior of some 380,000 U.K. university graduates. By controlling for a range of variables related to human capital acquisition and local economic conditions, we are able to distinguish between different types of sequential migration behavior from domicile to higher education and on to employment. Our findings indicate that U.K. female graduates are generally more migratory than male graduates. We suggest that the explanation for this result lies in the fact that migration can be used as a partial compensation mechanism for gender bias in the labor market.     

MIGRATION AND SELF‐SELECTION: MEASURED EARNINGS AND LATENT CHARACTERISTICS*

ABSTRACT Research in regional and labor economics has established that economic incentives play a significant role in the process of internal migration. The most common approach is to view migration as a form of human capital investment undertaken by individuals who expect to benefit from the standpoint of increased earnings. One of the central concepts in these models is self‐selection. Individuals who self‐select the option of migration tend to differ from the nonmigrant population in ways that are not measured in most data sets. The contribution of this paper is in its distinction between two aspects of migrant selection. On one hand, some workers possess unmeasured traits that might simultaneously affect their wages and their propensity to engage in risky human capital investment such as migration. On the other hand, measured earnings might exert a direct effect on migration. Based on samples of employed Swedish males and females at two points in time, this study seeks first to examine whether migration between the two periods occurs in the presence of correlation between unmeasured factors present in both earnings during the first period and the subsequent decision to migrate. Second, it looks for an explicit role of earnings per se in the migration decision. Results of the study provide support for selection based on unmeasured traits for both genders. For females, there is also evidence of selection based on measured earnings.     

Human capital sorting: The “when” and “who” of the sorting of educated workers to urban regions

The sorting of high‐ability workers is often advanced as one source of spatial disparities in economic outcomes. There are still few papers that analyze when human capital sorting occurs and whom it involves. Using data on 16 cohorts of university graduates in Sweden, we demonstrate significant sorting to urban regions on high school grades and education levels of parents, i.e., two attributes typically associated with latent abilities that are valued in the labor market. A large part of this sorting has already occurred in deciding where to study, because the top universities in Sweden are predominantly located in urban regions. The largest part of directed sorting on ability indicators occurs in the decision of where to study. Even after controlling for sorting prior to labor market entry, the “best and brightest” are still more likely to start working in urban regions. However, this effect appears to be driven by Sweden's main metropolitan region, Stockholm. We find no influence of our ability indicators on the probability of starting to work in urban regions after graduation when Stockholm is excluded. Studies of human capital sorting need to account for selection processes to and from universities, because neglecting mobility prior to labor market entry is likely to lead to an underestimation of the extent of the sorting to urban regions.     

RETURNS TO COLLEGE MAJORS ACROSS LARGE METROPOLITAN AREAS

In this paper, we provide new evidence that earnings for various college majors differ across large metropolitan areas in the United States. We then set out to explain, at least in part, why these differences exist. We find that the intrinsic elements of geographic areas, such as common agglomeration effects and spatial differences in demand, are an important explanation for all majors. Further, we find that the endogenous sorting of individuals plays less of a role, particularly for domestic‐born college graduates. The sorting of lower‐paid, foreign‐born college graduates, however, increases the estimated dispersion in returns across geographic areas.     

Business dynamism,educational attainment,and residential location choice

Using individual-level, geocode data from the National Longitudinal Survey of Youth's 1997 cohort, I ask whether business dynamism in local labor markets, defined as the rates of job creation and establishment entry, affects the location decisions of labor force participants, and I examine how effects differ for highly and less educated labor force participants. I find that a one standard deviation increase in business dynamism is associated with a 2%–4% increase in the probability a college graduate chooses a metropolitan statistical area and an 8%–15% decrease for high school graduates with no college experience. These results support recent findings documenting a decrease in responsiveness to local labor market conditions and suggest that incentivizing job creation in local labor markets may not be enough to offset the trend of declining internal migration in the United States.     

TAXATION AND INTERNAL MIGRATION—EVIDENCE FROM THE SWISS CENSUS USING COMMUNITY‐LEVEL VARIATION IN INCOME TAX RATES*

ABSTRACT We investigate the relationship between income tax rate variation and internal migration for the unique case of Switzerland, whose system of determining tax rates primarily at the community level results in enough variation to permit analysis of their influence on migration. Specifically, using Swiss census data, we analyze migratory responses to tax rate variations for various groups defined by age, education, and nationality/residence permit. The results suggest that young Swiss college graduates are most sensitive to tax rate differences, but the estimated effects are not large enough to offset the revenue‐increasing effect of a rise in tax rate. The migratory responses of foreigners and other age‐education groups are even smaller, and reverse causation seems negligible.     

Employability of German Geography Graduates: The Mismatch between Knowledge Acquired and Competences Required

The employability of university graduates is a concern in higher education as labour markets change more and more rapidly. This is of particular relevance for multi-faceted subjects such as geography. Studies on employability have to consider to what degree a university education helps graduates start a career. The results of a survey of 257 geography graduates of JLU (Justus Liebig University) Giessen, Germany, indicate that the traditional curricula did not necessarily prepare German geographers adequately for their jobs. The graduates possess more knowledge than required but lack important competences and transferable skills that the job market demands. This may be partly remedied by the introduction of project-oriented classes.     

SPATIAL MOBILITY AND RETURNS TO EDUCATION: SOME EVIDENCE FROM A SAMPLE OF FRENCH YOUTH*

ABSTRACT This study re‐evaluates the returns to geographic mobility and to the level of education taking into account the interaction between these two variables, and using the distance covered as a proxy for migration costs. We have at our disposal an original French database that permits precise calculation of the distance between the place of education and the location of first employment. For men, we find decreasing returns to spatial mobility as the distance covered rises and increasing returns to mobility with higher levels of education. The marginal returns to spatial mobility for women are lower across the board.     

Migration, Job Change, and Wage Growth: A New Perspective on the Pecuniary Return to Geographic Mobility

Abstract Using data from the National Longitudinal Survey of Youth 1979, this study examines the pattern of early career job mobility and migration in a sample of young male workers. Primary interest lies in the between–job wage change accompanying job transitions as well as the extended time–profile of migrant earnings. When the sample of job transitions is partitioned by education level, contemporaneous returns are found only for workers with twelve or less years of completed schooling. In contrast, highly educated workers demonstrate significant extended returns to migration with the bulk of pecuniary rewards accruing with a lag of nearly two years.     

SENIOR MIGRATION: SPATIAL CONSIDERATIONS OF AMENITY AND HEALTH ACCESS DRIVERS*

This paper extends the literature on amenity migration by focusing on healthcare access for later‐life migrants. Previous studies have strongly suggested that natural amenities are strong pull factors for later‐life migrants, but high natural amenity counties rarely possess the quality healthcare access optimal for elderly migrants. Utilizing a spatial Bayesian estimation strategy, we explicitly consider numerous drivers of later‐life migration to examine the extent to which health access is a driver in location decisions. We find healthcare access measures, including hospital expenditures, hospital beds, and number of doctors, are positively associated with later‐life migration decisions.     

NEIGHBORHOOD EFFECTS: ACCOMPLISHMENTS AND LOOKING BEYOND THEM*

ABSTRACT The paper addresses the empirical significance of the social context in economic decisions. Decisions of individuals who share spatial and social milieus are likely to be interdependent, and econometric identification of social effects poses intricate data and methodological problems, including dealing with self‐selection in spatial and social groups. It uses a simple empirical framework to introduce social interactions effects at different levels of aggregation, and examines estimation problems in linear models, the impact of self‐selection and of nonlinearities. It also examines neighborhood effects in job matching and proposes a research agenda that offers new techniques and data sources.     

RURAL–URBAN MIGRATION AND UNEMPLOYMENT: THEORY AND POLICY IMPLICATIONS*

ABSTRACT We develop a regional model where, in the city, unemployment prevails because of too high (efficiency) wages, while, in the rural area, workers are paid at their marginal productivity. We characterize the steady‐state equilibrium and show that it is unique. We then consider two policies: decreasing urban unemployment benefits and subsidizing urban employment. We find that decreasing the unemployment benefit in the city creates urban jobs and reduces rural–urban migration since new migrants have to spend some time unemployed before they can find a job in the city. On the other hand, raising employment subsidies increases urban employment but may also increase urban unemployment because it triggers more rural–urban migration. In this respect, the employment subsidy policy can backfire by raising rather than reducing urban unemployment.     

COLLEGE-TO-WORK MIGRATION OF TECHNOLOGY GRADUATES AND HOLDERS OF DOCTORATES WITHIN THE UNITED STATES

ABSTRACT.  This study estimates a series of random parameter logit models of the college-to-work migration decisions of technology graduates and holders of doctorates within the United States. We employ detailed information on the migration-relevant characteristics of individuals, as well as on their actual origins and destinations at the metropolitan scale. In addition to its obvious implications for "brain drain" policies in U.S. metropolitan areas, the study demonstrates the richness of the random parameters technique for behavioral-geographic analysis. We find that science and technology graduates migrate to better educated places, other things equal; that PhD graduates pay greater attention to amenity characteristics than other degree holders; and that foreign students from some immigrant groups migrate to places where those groups are concentrated.     

Metropolitan Colonisation and the Reinvention of Place: Class Polarisation along the Cessnock‐Pokolbin Fault‐Line

This paper examines the emergence of a sharply delineated socioeconomic and sociocultural fault‐line between Cessnock's former coal towns and the immediately adjacent Hunter Valley Wine Country, centred on Pokolbin. We provide evidence that divergent culturally‐related class identities act as mutually reinforcing constraints on reciprocity between job‐deficit former coal towns and the job‐surplus wine country. We relate this to a consideration of time‐space dimensions in the interdependencies between the class and place identities of Cessnock and Pokolbin. These identities have been influenced by metropolitan colonisation, with the markedly differentiated absorption of these two locales into the enlarged metropolitan population‐work‐welfare‐housing‐leisure agglomeration. Further, we propose that the former coal towns and the wine country can both be seen as place‐specific representations of wider class‐related changes within Australian society. Our interpretations are founded on three current research directions: first, the role of culture as a critical intervening variable in class identities and actions; second, the current flux in class formations, most notably the loss of self‐identity and solidarity in the working class and the emergence of a new middle‐class sector dedicated to self‐realisation and self‐fulfilment; and third, recognition of class formation as a geographical process.     

EXPLAINING THE VARIATION IN THE EMPIRICAL ESTIMATES OF ACADEMIC KNOWLEDGE SPILLOVERS*

ABSTRACT This paper presents a meta‐regression analysis of the empirical studies exploring the relationship between academic knowledge spillovers and regional innovation. The results of the literature are found to depend on country effects, the level of geographical aggregation employed, the method of measuring innovative output, the use of industry‐level data, and on the sectoral composition of the sample. Endogeneity, sample selection, and agglomeration forces are further elements that explain the findings on this issue but only weak evidence, after controlling for publication bias, supports the existence of a genuine spillover effect of university research on regional innovation.     

Migration and ethnic nationalism: Anglophone exit and the ‘decolonisation’ of Québec

This article explains the effects of ethnic nationalism on Anglophone and Francophone migration. The rise of Québec ethnic nationalism in the 1960s dismantled the cultural division of labour, which created new opportunities for Francophones but threatened Anglophones' traditional dominance over the Québec economy. This had negative consequences for Anglophones but positive outcomes for Francophones, which in turn accounts for differences in migration patterns. Drawing from the internal colony model as well as migration and exit‐voice theories, and using ecological census data, micro‐census data and election panel data, I find that the key variables that increase the likelihood of Anglophone out‐migration either do not explain Francophone out‐migration or have opposite effects. This is because ethnonationalist policies decreased the economic return particularly for well‐educated, higher‐earning, professional Anglophones in Québec, while increasing the economic position of Francophones and in particular well‐educated professionals.