Abstract

This project examines the determinants of internal migration in a context where wages tend to
be rather inflexible at a regional scale so that regional labour demand shocks have a prolonged
impact on employment rates. Regional income differentials then reflect both regional pay and
employment differentials. In such a context, migrants tend to move to regions that best reward
their skills in terms of both of these dimensions. As an extension to the Borjas framework,
the projekt investigates whether regions with a low employment inequality attract more
unskilled workers compared to regions with unequal employment chances.