Internal migration and wages of Italian university graduates*

In this paper, we estimate wage gains due to geographic mobility of Italian university graduates three years after graduation. By means of a matching procedure we quantify wage premia associated with the choice of studying far from home, moving after graduation and moving back home after graduation. We find evidence of large heterogeneity in the returns to different migration patterns. The results show large gains for those who move after graduation and smaller gains for those who migrate to study. Conversely, those who choose to go back home after having studied in regions different from that of origin suffer small losses. Our findings are robust to a finer definition of mobility and to the subsample of individuals originating from the South.     

Social networks and regional recruitment of foreign labour: Firm recruitment methods and spatial sorting in Denmark*

This paper tests the hypothesis that social networks are crucial for regional recruitment and inflows of foreign labour. New survey data on 971 firms located in Region Southern Denmark show that the predominant recruitment method of foreign labour was through networks. Danish municipal data from 1997–2006 furthermore reveal spatial sorting since initial shares of employees with a foreign background out of total regional employment predict foreign labour inflow rates to regional employment. Thus, social networks appear crucial for the recruitment and inflows of foreign labour, suggesting that employee referrals and information about vacancies in local job markets are also important for foreign labour. Resumen Este artículo pone a prueba la hipótesis de que las redes sociales son cruciales para la contratación regional y los flujos de mano de obra extranjera. Nuevos datos de una encuesta sobre 971 empresas ubicadas en la Región de Dinamarca Meridional muestran que el método de contratación predominante de mano de obra extranjera fue a través de redes. Datos municipales daneses de 1997‐2006 revelan además una clasificación espacial, ya que las cuotas iniciales de empleados de origen extranjero respecto del empleo regional total predicen tasas de afluencia de mano de obra extranjera para el empleo regional. Por tanto, las redes sociales parecen ser cruciales para el reclutamiento y la afluencia de mano de obra extranjera, lo cual sugiere que las referencias de los empleados y la información sobre ofertas de empleo en los mercados laborales locales son también importantes para la mano de obra extranjera.      

Learning mobility grants and skill (mis)matching in the labour market: The case of the ‘Master and Back’ Programme

This paper looks at the geographical mobility of graduate students and their skill matching in the labour market. The paper assesses the impact of a learning mobility grant scheme funded by the European Social Fund in Sardinia (ex‐Objective 1 region in the Italian Mezzogiorno). The scheme aims to foster regional human capital and increase the employability of local graduates by covering the cost of post‐graduate studies in other regions or countries. The econometric analysis is based on a unique dataset that combines administrative data on beneficiaries with information from a dedicated survey. The results suggest that learning mobility grants can reinforce skill matching only if the problem of self‐selection of the beneficiaries is properly addressed.     

All in the family: Self‐selection and migration by couples

This paper examines determinants of couple migration in a model that accounts for self‐selection of migrant couples. The study is based on a sample of married couples from the Swedish population. The model incorporates controls for earnings of both spouses preceding the move, and explicitly addresses unmeasured heterogeneity in the family decision to migrate. Two statistical formulations are presented. In the first version, migration is measured as a dichotomous move/stay decision. A second formulation replaces the dichotomous indicator with the distance moved by migrants. Results suggest that family migration is selective of relatively low earning wives with unmeasured potential for strong earnings.     

A spatio‐temporal measure of spatial dependence: An example using real estate data*

The computation of Moran's I index and his statistics test relies mainly on an exogenous specification of a spatial weights matrix. However, the exogenous weights matrix is usually developed in a strictly spatial context, even when data are collected over time. This paper develops a spatio‐temporal weights matrix and uses the new definition to evaluate spatial dependence using Moran's I index applied to real estate data for Québec City from 1986 to 1996. The results are compared with the original Moran's I index using a strictly spatial weights matrix specification based on Euclidian distance or contiguity. The findings suggest that ignoring the temporal dimension could lead to misinterpretation of the ‘real’ measure of spatial dependence over time. However, the time dimension cannot explain the total spatial autocorrelation since the Moran's I index is still significant even when adjusting for time consideration. The differences between the estimated indices and statistics depend on the structure of the spatial and the temporal weights matrices that are used to construct the complete spatio‐temporal weights matrix.     

An analysis of wage flexibility: evidence from the Spanish regions

The theory of Optimum Currency Areas poses that one of the most important costs that EMU may entail for countries belonging to it is the loss of some instruments of political economy (exchange rate and monetary policies) in response to shocks. The aim of this paper is to analyse real wage flexibility, which is one of the main alternative adjustment mechanisms to these policies. For this purpose, the case of the Spanish regions for the period 1985–1999 is reported. First, we develop a nonparametric approach to show that unemployment and productivity growth rates have reduced effects on wage evolution in the period of study. Second, semiparametric estimation techniques are applied to provide more econometric evidence regarding regional flexibility of real wages in Spain. Additionally, some suggestions are developed on the topic of EMU’s ability to improve the degree of regional wage flexibility. The general conclusion that we draw in the study is that regional wages are very rigid and the impact of EMU, though favourable, will be reduced.

Unemployment by gender and gender catching‐up: Empirical evidence from the Italian regions*

We examine the dynamic behaviour of unemployment rates by gender and of the gender unemployment gap over the 1992–2009 period by Italian regions. The results from unit root tests with unknown structural breaks indicate that the gender unemployment gap has narrowed in most cases. However, the pace of catching‐up and the dynamic behaviour characterizing the individual unemployment series differ substantially from one region to another. We comment on our results in the light of the reforms applied in the Italian labour market over the last two decades.     

Employment,income, migration and public services: A simultaneous spatial panel data model of regional growth*

We estimate a regional spatial panel simultaneous‐equations growth model, using a five‐step new estimation strategy that generalizes an approach outlined in Kelejian and Prucha. The study region consists of the 418 Appalachian counties 1980?2000. Estimates show feedback simultaneities among the endogenous variables, conditional convergence with respect to the respective endogenous variables, and spatial autoregressive lag and spatial cross‐regressive lag effects with respect to the endogenous variables. A key policy conclusion is that sector‐specific programs should be integrated and harmonized and that regionally differentiated development policies may yield greater returns than treating all locations the same. Estimamos un modelo de crecimiento de panel espacial regional por ecuaciones simultaneas, utilizando una nueva estrategia de estimación de cinco pasos que generaliza una enfoque descrito en Kelejian y Prucha. La región de estudio comprende los 418 condados Apalaches 1980‐2000. Las estimaciones muestran simultaneidades de retroalimentación entre las variables endógenas, convergencia condicional con respecto a las variables endógenas respectivas, y un retardo espacial autorregresivo y efectos de retardo regresivos cruzados espaciales con respecto a las variables endógenas. Una conclusión clave sobre políticas es que los programas sectoriales específicos deberían estar integrados y armonizados, y que las políticas de desarrollo diferenciadas regionalmente podrían producir mejores retornos que si se tratasen todas las localizaciones del mismo modo.      

The effect of unemployment, aggregate wages, and spatial contiguity on local wages: An investigation with German district level data

Despite spatial rigidity of collectively negotiated wages the local unemployment rate is found to have a significant negative impact on wages. This impact is shown to be consistent with both the wage-curve hypothesis and modern Phillips-curve modelling. Spatial contiguity effects are found in wages and unemployment and their neglect leads to an underestimation of the effect of local unemployment. Yet, the impact of local unemployment on wages turns out to be quite low as compared to studies for other countries. Some support for the hypothesis that negotiated wages suppress spatial wage flexibility comes from the finding that the impact of local unemployment on local wages decreases with its extent. Received: 13 December 1996 / Accepted: 8 June 1998     

The core‐periphery model with three regions and more*

We determine the properties of the core‐periphery model with three regions and compare our results with those of the standard 2‐region model. The conditions for the stability of dispersion and concentration are established. As in the 2‐region model, dispersion and concentration can be simultaneously stable. We show that the 3‐region (2‐region) model favours the concentration (dispersion) of economic activity. Furthermore, we provide some results for the n‐region model. We show that the stability of concentration of the 2‐region model implies that of any model with an even number of regions. Determinamos las propiedades de un modelo núcleo‐periferia de tres regiones y comparamos nuestros resultados con los del modelo estándar de dos regiones. Se establecen las condiciones para la estabilidad de la dispersión y la concentración. Al igual que en el modelo de dos regiones, la dispersión y la concentración pueden ser estables simultáneamente. Mostramos que el modelo de tres regiones (dos regiones) favorece la concentración (dispersión) de la actividad económica. Además, aportamos algunos resultados para un modelo n‐regional. Mostramos que la estabilidad de la concentración del modelo bi‐regional implica eso mismo de cualquier modelo con un número par de regiones.      

Self‐employment and local economic performance: Evidence from US counties*

This study explores the relationship between self‐employment and income growth, employment growth, and change in poverty in metro and non‐metro areas in the United States using county‐level panel data. We investigate the impact of the relative size of the self‐employment sector measured by the share of non‐farm proprietorships (NFPs) in total full and part‐time employment on three key economic performance indicators. We first estimate an income growth model to analyse the effects of self‐employment on income growth. Then we investigate the independent effects of self‐employment on employment growth and changes in family poverty rates. Our results indicate that higher self‐employment rates are associated with statistically significant increases over time in income and employment growth, and reductions in poverty rates in non‐metro counties. We find similar effects on metro county income and employment, but not on poverty dynamics.     

Urban spatial structure,agglomeration economies,and economic growth in Barcelona: An intra‐metropolitan perspective*

This paper presents an intra‐metropolitan approach to analyse the impact of urban spatial structure on local economic growth. Focusing on the Barcelona metropolitan region (BMR) between 1986 and 2001, we estimate a municipal employment growth model in which dynamic agglomeration economies related to urban spatial structure are considered using distance to employment centres, to assess metropolitan effects, and distance‐weighted variables, to measure neighbourhood effects. The results obtained show the existence of neighbourhood specialization economies and metropolitan urbanization‐localization economies fostering local growth. All of this leads to the paper's main conclusion: urban spatial structure is important for economic growth in an intra‐metropolitan context.     

Local human capital,segregation by skill,and skill‐specific employment growth*

Labour markets in most highly developed countries are marked by rising levels of segregation by skill and increasing inequality in skill‐specific employment prospects. However, analyses on regional employment growth by different skill levels are scarce and empirical evidence on the possible effects of skill segregation is lacking. By applying regional and firm‐level data for West Germany, this analysis provides new evidence for the adverse effects of skill segregation on low‐skilled employment growth. Furthermore, the findings reveal that a large share of local high‐skilled employment does not foster regional concentration of human capital, but ameliorates the employment prospects of less skilled workers. Resumen. Los mercados laborales de los países más desarrollados están marcados por un aumento en las tasas de segregación por cualificaciones y una mayor desigualdad en las perspectivas de empleo de acuerdo a talentos específicos. Sin embargo, han sido pocos los análisis de crecimiento regional del empleo realizados de acuerdo a niveles diferentes de cualificación y escasean las pruebas empíricas sobre los posibles efectos de la segregación por talentos específicos. Mediante la aplicación de datos regionales y a escala de empresa para Alemania Occidental, este análisis aporta nuevas pruebas de los efectos adversos de la segregación por talentos en el crecimiento del empleo de baja cualificación. Además, los resultados revelan que gran parte del empleo local altamente cualificado no fomenta una concentración regional de capital humano, pero mejora las perspectivas de empleo de trabajadores menos cualificados.