The more the merrier? Migration and convergence among European regions

Publication date: Available online 20 April 2017Source: Regional Science and Urban EconomicsAuthor(s): Lorenz Benedikt Fischer, Michael PfaffermayrAbstractA spatial system of equations for regional income growth and migration allows to identify the impact of migration on regional income convergence despite the dependence of migration rates on initial income per worker. Using a spatial systems estimator, we find a significant positive effect of migration on income convergence within the European Union on the NUTS 2 level. As migration is generally observed from low to high income regions, growth rates of income per worker tend to decrease in regions experiencing net immigration, while lagging regions experience higher speeds of income convergence due to net emigration. As a consequence, migration increases σ-convergence by about 0.45 percentage points.

Source: Regional Science and Urban Economics - July 11, 2018 Category: Science Source Type: research