Open access
Date
2016-09Type
- Working Paper
ETH Bibliography
yes
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Abstract
We investigate the dynamic effects of interregional labor market integration on migration flows, capital formation, and the price for housing services. The co-evolution of these variables depends on initial conditions at the time of labor market integration. In an initially capital-poor economy, there may be a reversal of migration flows during the transition to the steady state, while housing costs are increasing over time. Although capital may accumulate while labor emigrates early in the transition, the causal effect of immigration on capital investments and housing costs is positive. We present new data on the evolution of net migration flows and rental rates for housing in East Germany after 1990. Our results are consistent with the presented evidence in the reverse migration scenario. Show more
Permanent link
https://doi.org/10.3929/ethz-a-010712239Publication status
publishedJournal / series
Economics Working Paper SeriesVolume
Publisher
ETH Zurich, Center of Economic Research (CER-ETH)Subject
Capital formation; German reunification; Housing services; Labor market integration; Reverse migrationOrganisational unit
02120 - Dep. Management, Technologie und Ökon. / Dep. of Management, Technology, and Ec.03635 - Bretschger, Lucas (emeritus) / Bretschger, Lucas (emeritus)
Related publications and datasets
Is previous version of: http://hdl.handle.net/20.500.11850/320815
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ETH Bibliography
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