Migration and Adjustments to Shocks in Transition Economies

28 Pages Posted: 3 Oct 2001  

Jan Fidrmuc

Brunel University - Department of Economics and Finance; Centre for Economic Policy Research (CEPR); University of Michigan at Ann Arbor - The William Davidson Institute

Date Written: December 2001

Abstract

Does migration facilitate regional adjustment to idiosyncratic shocks in transition economies; If so, one should find a strong relationship between regional unemployment and average wages on the one hand, and migration flows on the other. Yet, the evidence from transition economies indicates that the efficacy of migration in reducing inter-regional unemployment and wage differentials has been low. High wages appear to stimulate overall mobility rather than encourage a net immigration, and, similarly, unemployment tends to discourage overall mobility rather than encourage net emigration. Moreover, migration flows have actually been declining in the course of transition, even as inter-regional disparities have been rising.

Keywords: Migration, Unemployment, Regional Shocks

JEL Classification: F22, J61, P23

Suggested Citation

Fidrmuc, Jan, Migration and Adjustments to Shocks in Transition Economies (December 2001). Available at SSRN: https://ssrn.com/abstract=285189 or http://dx.doi.org/10.2139/ssrn.285189

Jan Fidrmuc (Contact Author)

Brunel University - Department of Economics and Finance ( email )

Uxbridge UB8 3PH
United Kingdom
+44 1895 266 528 (Phone)
+44 1895 269 770 (Fax)

Centre for Economic Policy Research (CEPR)

77 Bastwick Street
London, EC1V 3PZ
United Kingdom

University of Michigan at Ann Arbor - The William Davidson Institute

724 E. University Ave.
Wyly Hall
Ann Arbor, MI 48109-1234
United States

Register to save articles to
your library

Register

Paper statistics

Downloads
129
rank
200,781
Abstract Views
1,087
PlumX