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http://dspace.mediu.edu.my:8181/xmlui/handle/10419/17838| Title: | Regional labor markets, network externalities and migration : the case of German reunification |
| Keywords: | J24 J64 J61 J11 J21 E24 ddc:330 German reunification labor market search network externalities migration regional economics Regionaler Arbeitsmarkt Binnenwanderung Regionale Arbeitsmobilität Deutschland |
| Issue Date: | 16-Oct-2013 |
| Publisher: | Kiel Institute for the World Economy (IfW) Kiel |
| Description: | Fifteen years after German reunification, the facts about slow regional convergence have born out the prediction of Barro (1991), except that migration out of East Germany has not slowed down. I document that in particular the 18-29 year old are leaving East Germany, and that the emigration has accelerated in recent years. To understand these patterns, I provide an extension of the standard labor search model by allowing for migration and network externalities. In that theory, two equilibria can result: one with a high networking rate, high average labor productivity, low unemployment and no emigration (?West Germany?) and one with a low networking rate, low average labor productivity, high unemployment and a constant rate of emigration (?East Germany?). The model does not imply any obviously sound policies to move from the weakly networked equilibrium to the highly networked equilibrium. |
| URI: | http://koha.mediu.edu.my:8181/xmlui/handle/10419/17838 |
| Other Identifiers: | http://hdl.handle.net/10419/17838 ppn:524300585 |
| Appears in Collections: | EconStor |
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