Occupational and Regional Mobility as Substitutes: A New Approach to Understanding Job Changes and Wage Inequality

Reichelt, Malte; Abraham, Martín

doi:10.1093/sf/sow105

Cited by 37 publications

(31 citation statements)

References 78 publications

(72 reference statements)

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“…We therefore set γ = 0.4. Reichelt and Abraham (2015) find that roughly 20% of the workers in their study move to another region in Germany to find a job in either the same or another occupation. 23 We therefore set the degree of mobility in the population, workers and the level of total factor productivity, will produce a symmetric equilibrium in terms of the allocation of mobile labor, production and per-capita income across regions.…”

Section: The Impact Of Trade Costs and Love Of Varietymentioning

confidence: 90%

Optimal Public Investment in Economic Centers and the Periphery

Meurers

Moenius

2018

SSRN Journal

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may AbstractWe analyze productivity enhancing public expenditure in a spatial economic model with labor mobility, firm-specific increasing returns to scale, and transport costs.Building on Krugman (1991), Fujita, Krugman and Venables (1999) and Redding (2016), we compare optimal investment and tax policies of fiscally autonomous regions to those of a benevolent central planer. We find transport costs and the size of scale effects to influence optimal tax and spending rates under both regimes. For sufficiently low transport costs and low substitutability between manufactured goods, regional fiscal autonomy leads to underinvestment: The lower the transport costs, the lower the local investment, and the higher the potential welfare gain through centralized policies. Our results challenge the view that local public goods should be financed entirely by local governments. They also help explain the recent decline of public investment at the municipal level in fiscally decentralized countries like Germany.

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Section: The Impact Of Trade Costs and Love Of Varietymentioning

confidence: 90%

Optimal Public Investment in Economic Centers and the Periphery

Meurers

Moenius

2018

SSRN Journal

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“…Job search evolves simultaneously along regional and occupational dimensions, which is reflected in the patterns of job mobility (Reichelt & Abraham, 2017). We conclude that the matching technology for occupation i in region l can be further adjusted by allowing spillovers from both occupations with similar contents j and other regions m:…”

Section: Spillovers In the Empirical Matching Functionmentioning

confidence: 92%

“…Moreover, the interdependence of labour markets along the regional and occupational dimension exists simultaneously. Thus, a study by Reichelt and Abraham (2017) documents that every fourth occupational change also involves regional mobility. In the present paper, we empirically estimate how the number of vacancies and unemployed in a local labour market relate to the emergence of new employment, that is, matching efficiency.…”

Section: Introductionmentioning

confidence: 99%

Job matching in connected regional and occupational labour markets

2019

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Job mobility equilibrates disparities in local labour markets and influences the job-matching efficiency. We specify a matching function with regional, occupational and combined regional-occupational spillovers of unemployed and vacancies. To construct these spillovers, we use information on regional proximities and occupational similarities. Based on novel German data on new hires, the unemployed and vacancies, we find significant positive effects of all spillover terms, with the exception of the negative and significant spillovers of the unemployed in other occupations. The reverse spillover effects could be used for designing macro-oriented policies aiming to improve job matching.

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“…Since these determinants are associated with the occupational structure, genderspecific occupations are often seen as one crucial determinant of a structural disadvantage for women. Consequently, some scholars have shown that occupational affiliation also affects the chance for regional mobility (e.g., Perales and Vidal 2013;Reichelt and Abraham 2017).…”

Section: Gender Differences In Willingness To Move: Theoretical Consimentioning

confidence: 99%

Gender differences in willingness to move for interregional job offers

Abraham¹,

Bähr²,

Trappmann³

2019

DemRes

Self Cite

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BACKGROUND Interregional job offers are an important mechanism of social mobility as they provide both career chances and opportunities to avoid unemployment. We know from the literature that couples have difficulties seizing these opportunities due to the unequal distribution of costs and benefits between partners. Consequently, couples generally show a lower willingness to move for a job offer for one of the partners. However, very little is known about the differences between men and women in assessing the attractiveness of a job-related household move. OBJECTIVE Focusing on all cohabitating couples, we address whether there are gender differences in willingness to move for a better job offer and how those differences can be explained. METHODS We employ a large household survey from Germany that includes a factorial survey experiment addressing willingness to move for a hypothetical job offer. RESULTS We find that (a) within couples, women show a lower willingness to move than men, but single women do not differ from single men; (b) variables resulting from standard theories on mobility contribute to the explanation of willingness to move; and (c) gender differences persist even after controlling for these variables. CONCLUSIONS Women show a lower willingness to move for a job when they are living with a partner in a household, and this cannot be sufficiently explained by standard theories of CONTRIBUTION Our findings reveal that interregional job offers contribute to gender inequality by hampering the career options of coupled women. A comparison with early results from the United States reveals that this seems to be a general pattern that cannot be explained by standard household migration theories.

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Occupational and Regional Mobility as Substitutes: A New Approach to Understanding Job Changes and Wage Inequality

Cited by 37 publications

References 78 publications

Optimal Public Investment in Economic Centers and the Periphery

Optimal Public Investment in Economic Centers and the Periphery

Job matching in connected regional and occupational labour markets

Gender differences in willingness to move for interregional job offers

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