DeutschClear Cookie - decide language by browser settings
Eggert, Wolfgang; Krieger, Tim; Meier, Volker (2010): Education, unemployment and migration. In: Journal of Public Economics, Vol. 94, No. 5-6: pp. 354-362

This is the latest version of this item.

Full text not available from 'Open Access LMU'.


This paper studies a two-region model in which unemployment, education decisions and interregional migration are endogenous. The poorer region exhibits both lower wages and higher unemployment rates, and migrants to the richer region are disproportionally skilled. The brain drain from the poor to the rich region is accompanied by stronger incentives to acquire skills even for immobile workers. Regional shocks tend to affect both regions in a symmetric fashion, and skill-biased technological change reduces wages of the unskilled. Both education and migration decisions are distorted by a uniform unemployment compensation, which justifies a corrective subsidization.

Available Versions of this Item