Do we follow the money? The drivers of migration across regions in the EU
Most immigration theories tend to highlight that migration follows wealth and economic dynamism, but is this also the case across regions in Europe? The aim of the paper is to investigate whether migrants in Europe indeed follow the money and to contrast this with a variety of potential alternative explanations, including the presence of migrants from a similar origin. The analysis is based on panel data estimations including 133 European regions over a time period of 17 years. Different lag structures have been employed in order to distinguish between short- and long-run effects. The results cast some doubt about the prominence of pecuniary factors as a determinant of cross regional migration in Europe, with little evidence to support the idea that migration follows economic dynamism. Network effects, human capital related-, and ‘territorially embedded’ innovation enhancing regional characteristics, by contrast, seem to play a much stronger role than hitherto considered.
Arellano M., Bond S. (1991), Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations, Review of Economic Studies, 58: 277-297.
Assadian A. (1995), Fiscal determinants of migration to a fast-growing state: how the aged differ from the general population, Review of Regional Studies, 25(3): 301–15.
Bauer, T., Zimmermann K.F., (1997), Network Migration of Ethnic Germans, International Migration Review, 31(1): 143-149.
Bhagwati J.N., Srinivasan T. (1974), On Reanalyzing the Harris-Todaro Model: Rankings in the case of sector specific sticky wages, American Economic Review, 64: 502-508.
Borjas, G. (1989), Economic theory and International migration, International Migration Review, 23(3): 457-485.
Borjas G.J., Bronars S.G., Trejo S.J. (1992), Self-selection and internal migration in the United States, Journal of Urban Economics, 32: 159-185.
Boyd, M. (1989), Family and Personal Networks in International Migration: Recent Developments and New Agendas, International Migration Review, 23: 638-670.
Burda M., Wyplosz C., (1992), Human capital, investment and migration in an integrated Europe, European Economic Review, 36(2-3): 677-684.
Cairns D., Menz S., (2007), Youth on the Move? Exploring Youth Migrations in Eastern Germany and Northern Ireland, In: Geisen T., Riegel C. (Eds.): Jugend, Partizipation und Migration. Orientier¬ungen im Kontext von Integration und Ausgrenzung, Wiesbaden. Springer Publishing, pp. 325-339.
Caselli C., Coleman J., (2001), The U.S. structural transformation and regional convergence: A reinterpretation, Journal of Political Economy, 109(3): 584-616.
Crescenzi, R. and Rodríguez-Pose, A. (2008) Infrastructure endowment and investment as determinants of regional growth in the European Union. European Investment Bank Papers, 13, 2, 62-101.
Dalmazzo, A. and De Blasio, G. (2007) Skill biased agglomeration effects and amenities: Theories with an application to the Italian case. Quaderni del Dipartimento di Economia Politica 503, University of Siena.
D'Antonio, M. and Scarlato, M. (2004) Three decades of Italian economic change: Unremitting decline? Review of Economic Conditions in Italy, 2, 165-216.
Day M. K. (1992), Interprovincial Migration and Local Public Goods, Canadian Journal of Economics / Revue Canadienne d'Economie, 25(1): 123-144.
Décressin J.W. (1994), Internal Migration in West Germany and Implications for East-West Salary Convergence, Review of World Economics, 130(2): 231-257.
Décressin, J., Fatàs, A. (1995), Regional labour market dynamics in Europe, European Economic Review, 39(9): 1627-1655.
Di Addario S, Patacchini E (2008), Wages and the city: Evidence from Italy, Labour Economics, 15: 1040-1061.
Etzo, I. (2008), Determinants of interregional migration in Italy: A panel data analysis, MPRA Paper 8637, University Library of Munich, Germany.
Fatàs, A. (2000), Intranational labor migration, business cycles and growth, In: Hess, G.D./van Wincoop E. (Eds.): Intranational Macro-Economics. Cambridge: Cambridge University Press, pp. 156–188.
Ferguson, M., Ali, K., Olfert, M.R., and Partridge, M. (2007), Voting with their feet: jobs versus amenities. Growth and Change, 38(1): 77-110.
Fields G.S. (1975), Rural – Urban Migration, Urban Unemployment and Job search Activities in LDCs, Journal of Development Economics Theory and Evidence, 2: 165-187.
Fields G.S. (1979), “Place-to-Place Migration: Some New Evidence”, The Review of Economics and Statistics, 61: 21-32.
Florida, R. (2002) The Rise of the Creative Class. New York, Basic Books.
Ghatak, S., Levine, P., Price, S.W., (1996), Migration Theories and Evidence: An Assessment, Journal of Economic Surveys, 10(2): 159-98.
Gordon I., (1985), The cyclical interaction between regional migration, employment and unemployment: a time series analysis for Scotland, Scottish Journal of Political Economy, 32(2): 135-158.
Greenwood, M.J., (1975), Research on Internal Migration in the United States: A Survey, Journal of Economic Literature, 13(2): 397-433.
Greenwood M.J., (1985), Human migration: Theory, models and empirical Studies, Journal of Regional Science, 25: 521–544.
Greenwood, M.J., (1997), Internal migration in developed countries, In: Rosenzweig, M.R., Stark, O. (Eds.), Handbook of Population and Family Economics. Elsevier, Amsterdam.
Haapanen, M., (2000), Impact of Expected Earnings on Interregional Migration Decisions in Finland, ERSA conference papers, European Regional Science Association.
Haapanen M., Ritsilä J., 2007, Can Migration Decisions be Affected by Income Policy Interventions? Evidence from Finland, Regional Studies, 41(3): 339-348.
Harris J.R. and M.P. Todaro (1970), Migration, Unemployment and Development: A Two Sector Analysis, American Economic Review, 60: 126-142.
Hicks, J. (1932). The Theory of Wages, London: McMillan.
Hooghe M., Trappers A., Meuleman B., Reeskens T. (2008), Migration to European Countries. A Structural Explanation of Patterns, 1980-2004, International Migration Review, 42(2): 476-504.
Huber P. (2004) , Inter-regional Mobility in Europe: A Note on the Cross – Country Evidence, In: Applied Economics Letters, 11(10): 619–624.
Jackman R., Savouris S. (1992), Regional Migration in Britain: An Analysis of Gross Flows Using NHS Central Registrar Data, The Economic Journal, 102(415): 1433-1450.
Jennissen R. (2003), Economic Determinants of Net International Migration in Western Europe, European Journal of Population / Revue Européenne de Démographie, 19 (2): 171-198.
Katz E., Stark, O. (1988), Individual migration as a family strategy: Young women in the Philippines, Population Studies, 42: 473-486.
Lee E.S. (1972), Eine Theorie der Wanderung, In Széll, G. (ed) Regionale Mobilität. München, pp. 115-129.
Lewis, W.A. (1954), Economic development with unlimited supplies of labour, The Manchester School of Economics and Social Studies, 22: 139-191.
Lundborg P. (1991), Determinants of Migration in the Nordic Labor Market, Scandinavian Journal of Economics, 93(3): 363-375.
Lundvall B.A. (1992), National systems of innovation: Towards a theory of innovation and interactive learning, Pinter, London, UK.
Malecki E. (1997), Technology and economic development: The dynamics of local, regional and national competitiveness, Second edition, Addison Wesley Longman, London, UK.
Massey D.S., Gracia E.F., (1987), The social process of international migration, Science, 237: 733-738.
Massey, D.S., Arango, J., Hugo G., Kouaouci A., Pellegrino A., Taylor J.E. (1993), Theories of International Migration: A Review and Appraisal, Population and Development Review, 19 (3): 431-466.
Massey, D., Arango, J., Hugo G., Kouaouci A., Pellegrino A., Taylor J.E., (1998), Worlds in Motion. Understanding International Migration at the end of the Millenium, Oxford University Press.
Mincer J. (1978), Family migration decisions, Journal of Political Economy 86: 749-773.
Obstfeld, M., Peri, G. (2000), Regional nonadjustment and fiscal policy, In: Hess, G.D.; van Wincoop, E. (Eds.): Intranational Macro-economics. Cambridge, Cambridge University Press, pp. 156–188.
Öberg, S. (1997), Theories on inter-regional migration: An overview, In H. H. Blotevogel & A. J. Fielding (Eds.), People, jobs and mobility in the new Europe (pp. 3–22), Chichester, England, Wiley.
Ottaviano, G., Puga D., (1998), Agglomeration in the Global Economy: A Survey of the 'New Economic Geography’, World Economy, 21(6): 707-731.
Partridge, M.D., (2010), The duelling models: NEG vs amenity migration in explaining US engines of growth. Papers in Regional Science, 89(3): 513-537.
Partridge, M.S., Rickman, D.S., Olfert, M.R. and Ali, K. (2012), Dwindling US internal migration: Evidence of spatial equilibrium or structural shifts in local labor markets? Regional Science and Urban Economics 42(1), 375-388.
Pekkala S., (2002), Migration and Individual Earnings in Finland: A Regional Perspective, Regional Studies, 36(1): 13-24.
Pekkala, S., (2003), Migration and individual earnings in Finland: Regional Differences in Migration Determinants and Migrant Types, International Regional Science Review, 26 (4): 446-482.
Piore M.J., (1979), Birds of Passage: Migrant Labour in Industrial Societies, Cambridge, Cambridge University Press.
Pissarides Ch. A., McMaster I., (1990), Regional Migration, Wages and Unemployment: Empirical evidence and implications for Policy, Oxford Economic Papers, 42(4): 812-831.
Puga D., (2002), European regional policies in the light of recent location theories, Journal of Economic Geography, 2(4): 373-406.
Puhani P.A., (2001), Labour Mobility: An Adjustment Mechanism in Euroland? Empirical Evidence for Western Germany, France and Italy, German Economic Review, 2: 127–140.
Ranis, G., Fei, J.C.H. (1961), A theory of economic development, American Economic Review, 51: 553-565.
Rodríguez-Pose A., (1999), Innovation prone and innovation averse societies, Economic performance in Europe, Growth and Change, 30(1): 75-105.
Rodríguez-Pose A., Crescenzi R., (2008), R&D spillovers, Innovation System and the genesis of regional Growth in Europe, Regional Studies, 42(1): 51-67.
Rodríguez-Pose, A., Ketterer, T.D., (2012). Do Local Amenities Affect the Appeal of Regions in Europe for Migrants?. Journal. of Regional. Science, 52: 535–561.
Rodríguez-Pose, A. and Tselios, V. (2010), Returns to migration and educational externalities in the European Union, Papers in Regional Science, Blackwell Publishing, 89(2): 411-434.
Rodríguez-Pose, A. and Tselios, V. (2011) Individual Earnings and Educational Externalities in the European Union. Regional Studies (forthcoming).
Rodríguez-Pose A., Vilalta-Bufí M. (2005), Education, migration, and job satisfaction: The regional returns of human capital in the EU, Journal of Economic Geography, Oxford University Press, 5(5): 545-566.
Roodman D. (2006), How to do xtabond2: An introduction to ‘Difference’ and ‘System’ GMM in Stata,, Centre for Global Development, Working Paper No. 103.
Rudd J. (2000), Empirical evidence on human capital spillovers, Finance and Economics
Discussion Paper 2000-46, Federal Reserve Bank.
Schmidt C.M., Stilz A., Zimmermann K.F. (1994), Mass Migration, Unions and Government Intervention, Journal of Public Economics, 55(2): 185-201.
Shah N. M., Menon I. (1999), Chain migration through the Social Network: Experience of Labour Migrants in Kuwait, International Migration, 37 (2): 361-382.
Sjaastad L.A. (1962), The costs and returns of human migration, Journal of Political Economy, 70: 80-93.
Stark O. (1991), The Migration of Labor, Blackwell Publishers: Cambridge, MA.
Surico P. (2003), Geographic Concentration and Increasing Returns, Journal of Economic Surveys, 17(5): 693-708.
Todaro M.P. (1968), An analysis of industrialization, employment and unemployment in LDC’s, Yale Economic Essays, 8(2): 329-402.
Todaro, M. P. (1969), A model of labour migration and urban unemployment in less-developed countries, American Economic Review, 59: 138-48.
Tassinopoulos A., Kristensen H.W.S. (1998), Mobility and migration of labour in the European Union and their specific implications for young people, CEDEFOP - European Centre for the Development of Vocational Training, 1st edition, Thessaloniki, 1998.
Taylor, J.E., (1986), Differential migration, networks, information and risk, In Oded Stark (ed.), Research in Human Capital and Development, Vol. 4, Migration, Human Capital, and Development, Greenwich, Conn., JAI Press, pp. 147-171.
Zimmermann K.F. (2005), European Labour Mobility: Challenges and Potentials, De Economist, 153(4): 425-450.
This work is licensed under a Creative Commons Attribution-NonCommercial 4.0 International License.REGION is an open journal, and uses the standard Creative Commons license: Copyright We want authors to retain the maximum control over their work consistent with the first goal. For this reason, authors who publish in REGION will release their articles under the Creative Commons Attribution-NonCommercial license. This license allows anyone to copy and distribute the article for non-commercial purposes provided that appropriate attribution is given to REGION and the authors. For details of the rights authors grant users of their work, see the "human-readable summary" of the license, with a link to the full license. (Note that "you" refers to a user, not an author, in the summary.) Upon submission, the authors agree that the following three items are true: 1) The manuscript named above: a) represents valid work and neither it nor any other that I have written with substantially similar content has been published before in any form except as a preprint, b) is not concurrently submitted to another publication, and c) does not infringe anyone’s copyright. The Author(s) holds ERSA, WU, REGION, and the Editors of REGION harmless against all copyright claims. d) I have, or a coauthor has, had sufficient access to the data to verify the manuscript’s scientific integrity. 2) If asked, I will provide or fully cooperate in providing the data on which the manuscript is based so the editors or their assignees can examine it (where possible) 3) For papers with more than one author, I as the submitter have the permission of the coauthors to submit this work, and all authors agree that the corresponding author will be the main correspondent with the editorial office, and review the edited manuscript and proof. If there is only one author, I will be the corresponding author and agree to handle these responsibilities.