Interregional Migration in Germany: Characteristics and Effects for Regions and Migrants

Abstract

German unification and the subsequent breakdown of economic activity in East Germany initiated enormous migration flows from East to West Germany. People from East Germany moved towards West Germany, where wages are higher and employment opportunities are more favourable. Our paper takes a somewhat broader perspective; it analyses migration flows between four macro regions, i.e. East, North, South and West. The focus is on characteristics of regions and migrants, selection of migrants into regions and effects of migration for regions and migrants.

The empirical results reveal significant differences between the regions and between migrants and stayers. Differences between East and the western regions are outstanding, but differences between North and South are noteworthy as well. Age and children in the household are more important determinants for migrants’ selection into regions than schooling. Migrants are a positive selection in terms of schooling but a negative selection in terms of (un)employment. Finally, migration gains for moves from East towards the western regions are enormous.

Keywords: Interregional migration, labour markets, GSOEP

JEL Classification: C23, J21, O15, R23