The returns to job mobility and inter-regional migration: Evidence from Germany

This paper provides an extensive analysis of the wage effects of inter-regional mobility within Germany. Comparing skilled region-type movers with skilled non-migratory establishment movers we find clear evidence of an additional effect of inter-regional mobility which becomes fully effective after three years. The highest returns are obtained by young workers and by rural-urban movers. The introduction of fixed district and establishment effects tackles the notorious nuisance of regional price-level differences and reveals that the mobility returns can be decomposed into roughly equal contributions of human capital accumulation and search gains.