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Job Changes and Interregional Migration of Graduates February 26, 2016
AbstractWe empirically analyze job changes and related location choices for graduates in Germany and its determinants. Using a longitudinal, representative survey-based dataset, we not only observe the transition of graduates to the labor market but also every subsequent job change within five years after graduation. Contrary to what is often assumed in the literature, our findings show that around 75% of the graduates have more than one job within our observation period and for a non-negligible share of them, job changes are related to interregional migration. Whereas job changes mostly depend on the field of study and previous employment conditions, migration is predominantly affected by previous migration paths and regional characteristics.
JEL-Classification: J61, J62, R11, I23, H72Keywords: job changes, interregional migration, graduates, longitudinal graduate survey
IntroductionIn recent decades, migration of high-skilled has notably increased (see, e.g., Docquier and Marfouk 2005 for international evidence). From a global perspective, this development is positive as a more mobile high-skilled workforce leads to a more efficient allocation of labor across regions and countries and allows for better adjustments to economic change (Borjas et al. 1997). From the regional or national perspective, however, the effects are less clear. In particular, whether the investment in higher education pays out depends on graduate mobility. If more graduates in a region lead to more human capital there, this can be expected to foster economic growth and innovative performance (see, e.g., Audretsch et al. 2005, Baptista and Mendonça 2010, Fritsch and Aamoucke 2013 and to lead to higher tax revenues (Gérard and Uebelmesser 2014). But there is considerable theoretical and empirical evidence that the individual propensity to migrate is positively correlated with human capital endowment (Coulom...