Authors:Francisco Perales Pages: 577 - 601 Abstract: Abstract There is ample evidence that internal migration is a vehicle for upwards economic and social mobility, particularly amongst young educated people, with studies documenting favourable effects on objective labour market outcomes such as employment status, earnings and occupational standing. However, this literature has been more silent about the potential effects of internal migration on subjective measures of utility. In this paper I use panel data from Australia and Britain and panel regression models to examine whether and how internal migration is associated with young people’s self-reported job satisfaction, paying attention to the time dynamics underpinning the associations. This enables gaining a more holistic picture of the outcomes associated with internal migration during early adulthood. Key findings indicate that long-distance and work-motivated migrations have positive and statistically significant effects on the job satisfaction of young people in Britain and Australia, particularly amongst those who hold university degrees. Additionally, the results reveal time patterns in the ways in which job satisfaction and residential mobility intersect: long-term trends in job dissatisfaction can trigger internal migration, and internal migration can set long-term onwards trends in job satisfaction. I conclude by calling for further research on the outcomes of internal migration on subjective well-being leveraging the properties of panel data and using a life course approach. PubDate: 2017-11-01 DOI: 10.1007/s00168-015-0728-3 Issue No:Vol. 59, No. 3 (2017)
Authors:Riccardo Crescenzi; Nancy Holman; Enrico Orru’ Pages: 603 - 627 Abstract: Abstract This paper explores the factors that shape the location choices of formerly mobile graduates (FMGs) initially resident in Sardinia, Italy, a less developed European region. Combining qualitative and quantitative techniques, the paper examines the reasons why some individuals decide to return after their studies, the factors that shape their decisions and how these choices unfolded in space and time. It counters the literature, which suggests that migration is a one-off linear process driven only by wealth-maximising behaviour, positing rather that access to opportunities in open meritocratic job markets and circular migration trajectories are far more salient to FMGs. This suggests that policy makers should concentrate on promoting labour market opportunities and invest in social networks that will aid brain circulation. PubDate: 2017-11-01 DOI: 10.1007/s00168-016-0762-9 Issue No:Vol. 59, No. 3 (2017)
Authors:John V. Winters Pages: 629 - 649 Abstract: Abstract College graduates are considerably more mobile than non-graduates, and previous literature suggests that the difference is at least partially attributable to college graduates being more responsive to employment opportunities in other areas. However, there exist considerable differences in migration rates by college major that have gone largely unexplained. This paper uses microdata from the American Community Survey to examine how the migration decisions of young college graduates are affected by earnings in their college major. Results indicate that higher major-specific earnings in an individual’s state of birth reduce out-migration suggesting that college graduates are attracted toward areas that especially reward the specific type of human capital that they possess. PubDate: 2017-11-01 DOI: 10.1007/s00168-016-0748-7 Issue No:Vol. 59, No. 3 (2017)
Authors:Ye Liu; Jianfa Shen; Wei Xu; Guixin Wang Pages: 651 - 676 Abstract: Abstract A burgeoning body of the literature has studied the migration of university-bound students and university graduates in developed countries, but little research has been conducted on this issue in China. Using microdata from the 2005 1 % population sample survey, this paper examines, for the first time, the migration of university entrants and graduates in China by describing their migration patterns and modeling their choices of destination location. The migration patterns show that recent university graduates are highly concentrated in three eastern provincial units, Beijing, Shanghai, and Guangdong, and that the destinations of university entrants tend to be more dispersed geographically. The results from conditional logit models indicate that highly educated youths, in particular those who study in a regular university, have a strong tendency to stay in the same province after graduation. The migration of university entrants is determined mainly by regional differences in university enrollment, while the distribution of national key universities, economic opportunities, and the cost of living plays a less important role in their location choices. The migration of university graduates is driven primarily by regional differences in wage levels. Comparing with vocational college entrants, regular university entrants are attracted to regions with more national key universities. Comparing with vocational college graduates, regular university graduates are attracted to regions with higher wage levels. Our findings suggest that increasing labor market returns is a more effective approach than investing in higher education to curb brain drain in China’s less developed regions. PubDate: 2017-11-01 DOI: 10.1007/s00168-016-0753-x Issue No:Vol. 59, No. 3 (2017)
Authors:Kathryn R. Dotzel Pages: 677 - 705 Abstract: Abstract The primary objective of this paper is to examine the influence of natural amenities on student migration decisions using institution-level data from the National Center for Education Statistics’ Integrated Postsecondary Education Data System. We surpass the scope of previous studies focused on natural amenities, which rely on a limited selection of state-level measures, by matching interpolated weather station- and county-level climate data to each post-secondary institution. Results suggest that students consider natural amenities in their migration to college decision and, in a number of cases, preferences for natural amenities vary based on origin state amenity conditions. Nonetheless, migration decisions are dominated by origin state educational opportunities and by proximity of the student’s origin state to the state of college attendance. PubDate: 2017-11-01 DOI: 10.1007/s00168-016-0765-6 Issue No:Vol. 59, No. 3 (2017)
Authors:Lina Bjerke; Charlotta Mellander Pages: 707 - 729 Abstract: Abstract Two major challenges in Europe’s rural areas are an aging population and the diminishing share of human capital. While this pattern has been occurring for a long time, the effects are becoming acutely visible and impactful. The long-term loss of younger individuals has in many ways “drained” the labor market and the economic market power of rural areas. This is the context of our research: the locational choice of university graduates from an urban–rural perspective. Using micro data covering the entire Swedish population, we identify all university graduates from the year 2001. We analyze them with respect to whether they live in a rural or urban region before starting university and where they live after graduation at two points in time: 5 and 10 years. We use a series of multinomial logit regressions to determine what factors affect their short-term and long-term choices of location. We find that having children is one of the most influential factors for moving back home after graduation, irrespective of type of region. We find only minor differences between the two time perspectives. PubDate: 2017-11-01 DOI: 10.1007/s00168-016-0777-2 Issue No:Vol. 59, No. 3 (2017)
Authors:Pantelis Kazakis; Alessandra Faggian Pages: 731 - 758 Abstract: Abstract The literature on human capital, and its positive effects on individuals and regional economies, is now vast. The linkages between human capital and migration have also found a fertile ground in recent years especially in Europe where many studies have focused on interregional migration of graduates and highly skilled individuals. However, the literature on this phenomenon in the USA is less developed. Using the SESTAT database from NSF, this paper aims at contributing to the understanding of inter-state migration behavior of graduates in the USA and its effects on their career outcomes. It builds on the existing literature not only by focusing specifically on the US context, but also incorporating into the empirical model a correction for the possible selection bias that arises from the dual relationship between migration propensity and human capital endowment. Our estimated Mincerian earning equations, corrected for migrant self-selectivity, show that indeed repeat migration is associated with higher average salaries, while late migration is associated with a salary penalty. As for the other control variables, our results are consistent with what has been found in the labor economics literature. Female workers suffer from a salary penalty, while experience, level of education and employer size are all associated with higher average salaries. The labor market also rewards different fields of study differently. PubDate: 2017-11-01 DOI: 10.1007/s00168-016-0773-6 Issue No:Vol. 59, No. 3 (2017)
Authors:Marco Di Cintio; Emanuele Grassi Pages: 759 - 791 Abstract: Abstract Following a recent stream of research that focuses on the migration of high-skilled workers, this paper examines the wage performance of two cohorts of Italian Ph.D. graduates associated with international mobility. After controlling for the endogeneity of the migration decision, we find that labor mobility is associated with higher wages and that selection on unobservable traits is essential to address the issue of the returns to migration. Additionally, we do not find evidence of individual heterogeneity in the response of wages to migration. We also show that our results are always confirmed when we include two exclusion restrictions in the empirical model and when we restrict the analysis to different subpopulations. PubDate: 2017-11-01 DOI: 10.1007/s00168-016-0749-6 Issue No:Vol. 59, No. 3 (2017)
Authors:Viktor A. Venhorst Pages: 793 - 817 Abstract: Abstract We study the recursive relationship between the ability of Dutch cities to attract recent graduate human capital to their labour—or housing markets and a city’s skills structure, using a comprehensive dataset and a novel operationalisation strategy. We disentangle production and consumption spillovers by separating out human capital employed in a city’s labour market and human capital present in a city’s resident population, respectively. We do so for both the recent graduates flowing into Dutch cities to find work and a residential location, as well as for the incumbent workers and population. We control for the effects of a city’s skills endowments, its (non-) economic characteristics and those of other relevant cities. We find positive effects of a relatively strong graduate labour market inflow on the share of higher and scientific-level jobs. Production spillovers therefore predominantly occur among the higher skilled. Contrary to the higher educated incumbent population, which appears to prefer high skilled services, recent graduate inflows to residential areas have positive effects on the share of jobs requiring lower and medium skills. Consumption spillovers from graduate residential inflows thus occur between higher and lower skilled. PubDate: 2017-11-01 DOI: 10.1007/s00168-016-0754-9 Issue No:Vol. 59, No. 3 (2017)
Authors:Francisco Rowe; Jonathan Corcoran; Martin Bell Pages: 819 - 845 Abstract: Abstract The school-to-work transition comprises a critical period of human capital development for young people. As school-to-work pathways become increasingly diverse and complex, there is growing evidence that transitions during this period significantly influence individual career trajectories and long-term earning capacities. For non-metropolitan youth, this period of the life course often involves migration to urban centres in the search for better educational and employment opportunities. Drawing on longitudinal data, this paper examines the influence of migration and school-to-work pathways on entry-level wages for non-metropolitan youth in Australia. Our results highlight that migration from non-metropolitan communities to urban centres leads to higher entry-level wages, but these wage gains are not immediate, rather they are realised at a period 3 years post-migration. Individuals remaining in non-metropolitan communities were found to experience pathways that lead to lower wage returns. Furthermore, unobserved attributes, such as motivation and aspirations, were found to be a major factor explaining the higher wage returns achieved by non-metropolitan migrants. Findings have important consequences for policy in their potential to contribute to new evidenced-based policy designed to entice the return of young people to non-metropolitan communities and ameliorate the long-standing net loss of young population from regional areas. PubDate: 2017-11-01 DOI: 10.1007/s00168-016-0771-8 Issue No:Vol. 59, No. 3 (2017)
Authors:Mutsumi Matsumoto; Kota Sugahara Pages: 419 - 426 Abstract: Abstract Gugl and Zodrow (Natl Tax J 68:767–802, 2015) derive a general condition for (in)efficient public-input provision under production-tax financing. Their condition is described in terms of log modularity of production technology. This paper shows that in the case of “factor-augmenting” public inputs, the Gugl–Zodrow condition can be characterized in terms of the technical changes caused by public-input provision. PubDate: 2017-09-01 DOI: 10.1007/s00168-017-0837-2 Issue No:Vol. 59, No. 2 (2017)
Authors:Andrzej Cieślik; Iryna Gauger; Jan Jakub Michałek Abstract: Abstract This paper studies role of agglomeration externalities and market structure in determination of total factor productivity (TFP) of Ukrainian firms, having controlled for individual firm characteristics. We use micro-level data for manufacturing and service sectors in years 2005 and 2013. Our empirical results confirm the importance of various agglomeration externalities as well as competition in determination of TFP of Ukrainian firms. In addition, we find the statistically significant link between the total factor productivity, intangible assets, capital intensity, firm size, ownership status and firm internationalization (exports and imports). PubDate: 2017-10-19 DOI: 10.1007/s00168-017-0851-4
Authors:Hongbo Wang; Dan Rickman Abstract: Abstract An integrative empirical analysis of several regional economic outcome variables in China for the period of 1995–2013 reveal the major sources of regional growth differences in China. Patterns of growth in population, per capita income, gross regional product, housing prices and changes in unemployment rates are identified using principal components analysis. Regression analysis of principal component scores is applied to identify geographic and administrative status patterns in the sources of the growth. The analysis suggests that shifts in labor supply largely were responsible for the regional growth differences over the period, though shifts in labor demand were nearly equally as important. The results have implications for evaluating the success of regional development policies such as the Western Development Strategy. PubDate: 2017-10-17 DOI: 10.1007/s00168-017-0847-0
Authors:Tomomi Miyazaki Abstract: Abstract This study examines the effects of government investment on private capital formation, considering both regional and sectoral distinctions in Japan. The empirical results show that a crowding-out effect is observed in rural areas for several industries that contribute to regional economic growth. This suggests that the allocation of public stimulus investment packages to stagnant regions in Japan might act as a regional growth constraint as well as an obstacle to the capital formation, and stagnant regions cannot evade the stagnation even if the central government plans economic stimuli toward such regions, including public investment. PubDate: 2017-10-11 DOI: 10.1007/s00168-017-0852-3
Authors:Gábor Békés; Péter Harasztosi Abstract: Abstract This paper proposes a simple and transparent method for measuring spatial robustness of regionally estimated coefficients and considers the role of the administrative districts and of the size of regions. The procedure offers a new solution for a practical empirical issue: comparing the variables of interest across spatially aggregated units. It improves upon existing methods, especially when spatial units are heterogeneous. To illustrate the method, we use Hungarian data and compare estimates of agglomeration externalities at various levels of aggregation. Using the procedure, we find that the method of spatial aggregation seems to be of equal importance to the specification of the econometric model. PubDate: 2017-10-07 DOI: 10.1007/s00168-017-0849-y
Authors:Tiago Freire; Xiaoye Li Abstract: Abstract In this study, we show that an inflow of immigrants reduces volunteering, a proxy of social capital investment, in receiving communities. Since the 1960s, there has been a large decrease in social capital in the USA as well as a considerable inflow of immigrants. This increased heterogeneity of US cities may have increased the cost of investing in social capital, and thereby, reduced such investment. By using the current population survey September Volunteer Supplement for 2005–2011, we examine the relationship between the proportion of foreign-born people and social capital investment by US-born individuals, proxied by volunteering. Once we correct for immigrants’ self-selection to different destinations using a supply–push instrumental variable, we find that a 1 standard deviation increase in the proportion of foreign-born individuals in a state reduces the probability of US-born individuals volunteering by 0.09–0.15 standard deviations and cuts number of hours volunteered by 0.13–0.21 standard deviations. PubDate: 2017-10-05 DOI: 10.1007/s00168-017-0848-z
Authors:Carlo Ciccarelli; Anna Missiaia Abstract: Abstract This paper investigates regional business cycle co-movements in Austria–Hungary from 1867 to 1913. Economic theory suggests that rising market integration induces sectoral specialisation, resulting in a reduction in the correlation of regional GDP cycles (Krugman effect). However, the synchronisation of business cycles is expected to increase because of the growing inter-linkages among regions led by the adoption of common currency and common economic policies (Frankel and Rose effect). We show that in the case of nineteenth-century Austria–Hungary the specialisation effect, most likely amplified by the stock market crisis of 1873, prevailed during 1867–1890, while the common currency/policy effect prevailed during 1890–1913, when the gold standard was adopted in both Austria and Hungary. However, core and peripheral regions contributed differently to the correlation of business fluctuations. PubDate: 2017-10-05 DOI: 10.1007/s00168-017-0850-5
Authors:Edward M. Bergman; Attila Varga Abstract: Abstract The European Neighbourhood Policy (ENP) is intended to promote development in bordering states and regions positioned along a broad arc from Morocco to Ukraine to become more friendly, stable, and prosperous. The policy offers limited but attractive terms of association with selected non-EU members concerning trade, mobility, innovation, and assistance in exchange for the adoption of important Western features that comprise the Community Acquis. The theme of this special issue hews closely to the economic development goals of the ENP by examining forces and factors that underlie the ability of neighbouring regions and countries to acquire and exploit innovative technologies, which are seen as the key element of a successful ENP. PubDate: 2017-10-04 DOI: 10.1007/s00168-017-0826-5
Authors:Matthew Gnagey; Therese Grijalva Abstract: Abstract Convenient and local access to open green space is highly valued in many communities, particularly those comprised largely of individuals who participate in natural resource outdoor recreation. Understanding the value outdoor recreation communities place on access to open space is critical for informing policy decisions on land use including zoning and other restrictions, government open space purchases, and open space access points such as trailheads. In this article, we analyze the impact of trail access on property values in Ogden, Utah, using spatial hedonic pricing models. We consistently find substantial premiums for properties located closer to trailheads. Using a spatial Durbin error model, we find a 0.6% direct effect premium for each minute closer in driving time to the nearest trailhead, and a 1.4% premium when accounting for the total impact. We also find direct premiums between 0.4 and 1.9% for each minute closer in driving time to individual trailheads in this region. Additionally, homes adjacent to trailheads do not experience negative spillovers that homeowners may experience from increased traffic and congestion. PubDate: 2017-09-30 DOI: 10.1007/s00168-017-0846-1
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