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Internal migration in West Germany and implications for East-West salary convergence

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Abstract

Internal Migration in West Germany and Implications for East-West Salary Convergence. — Using a simple model of gross migration, the paper shows that provided economic agents are sufficiently risk averse, migrational flows are likely to be procyclical. The econometric results confirm that flows are highly procyclical. They further indicate that changes in regional economic disparities significantly affect migrational flows. However, given the widening of regional disparities in the 1980s accompanied by a worsening in aggregate conditions, migration seems least effective in offsetting the differentiated impact of labor market shocks when it would be most useful. The paper concludes by applying the results to the issue of east-west migration and salary convergence.

Zusammenfassung

Binnenwanderungen in Westdeutschland und Folgerungen für die Lohnkonvergenz zwischen Ost und West. —Der Autor verwendet ein einfaches Modell der Brutto-Wanderungsbewegungen und zeigt, daß Wanderungsströme gewöhnlich prozyklisch sind, sofern die Wirtschaftssubjekte hinlänglich risikoscheu sind. Die ökonometrischen Ergebnisse bestätigen, daß sich die Ströme stark prozyklisch verhalten. Sie zeigen ferner, daß regionale wirtschaftliche Unterschiede die Wanderungsströme signifikant beeinflussen. Angesichts der Vergrößerung der regionalen Unterschiede in den 80er Jahren, die von einer Verschlechterung der Gesamtbedingungen begleitet war, scheinen die Wanderungsbewegungen allerdings dann am wenigsten dazu beigetragen zu haben, die differenzierte Wirkung von Arbeitsmarktschocks auszugleichen, als es am nützlichsten gewesen wäre. Schließlich werden die Ergebnisse auf den Fall der Ost-West-Wanderung und der Lohnkonvergenz zwischen Westdeutschland und Ostdeutschland angewandt.

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Decressin, J.W. Internal migration in West Germany and implications for East-West salary convergence. Weltwirtschaftliches Archiv 130, 231–257 (1994). https://doi.org/10.1007/BF02707708

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