Migration and Regional Adjustment to Asymmetric Shocks in Transition Economies

Fidrmuc, Jan

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Migration and Regional Adjustment to Asymmetric Shocks in Transition Economies

26 Pages Posted: 17 Apr 2003

See all articles by Jan Fidrmuc

Jan Fidrmuc

Brunel University - Department of Economics and Finance; L.E.M., Université de Lille; CESifo (Center for Economic Studies and Ifo Institute); Global Labor Organization (GLO); Institute for Strategy and Analysis, Government Office of the Slovak Republic

There are 2 versions of this paper

Date Written: February 2003

Abstract

Does migration facilitate regional adjustment to idiosyncratic shocks? The evidence from post-communist economies indicates that the efficacy of migration in reducing inter-regional unemployment and wage differentials has in fact been rather low. High wages appear to encourage - and, similarly, high unemployment tends to discourage - overall migration - inbound and outbound - rather than induce a net flow from depressed regions to those with better economic conditions. Even when the impact of unemployment and wages on net migration is statistically significant, it is economically very small. Finally, migration flows have actually been declining in the course of transition, even as inter-regional disparities have been rising.

Keywords: Migration, regional adjustment, regional shocks, optimum currency areas

JEL Classification: F22, J61, P23

Suggested Citation: Suggested Citation

Fidrmuc, Jan and Fidrmuc, Jan, Migration and Regional Adjustment to Asymmetric Shocks in Transition Economies (February 2003). Available at SSRN: https://ssrn.com/abstract=396140