Cultural biases in migration: Estimating non‐monetary migration costs |
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| Authors: | Oliver Falck Alfred Lameli Jens Ruhose |
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| Affiliation: | 1. Ifo Institute – Leibniz‐Institute for Economic Research at the University of Munich, Munich and Ludwig‐Maximilians‐University of Munich (LMU) and CESifo, Munich, Germany;2. Research Centre Deutscher Sprachatlas, Marburg, Germany;3. Leibniz University Hannover, Hannover, Germany and IZA |
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| Abstract: | We monetize the cost for moving to a culturally different location. We combine administrative social security panel data with a proxy for cultural difference based on historical dialect dissimilarity between German counties. Conditional on geographic distance and pre‐migration wage profiles, we find that migrants demand a (indexed with respect to local rents) wage premium of about 1 (1.5) per cent for overcoming one standard deviation in cultural dissimilarity. The effect is driven by males and those who earn above average occupational wages before migration, and more pronounced for geographically short moves. |
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| Keywords: | Migration costs culture internal migration psychic cost |
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