Juarez-Mulero, Juan Pablo
(1995)
Regional labour markets and interregional migration: Spain, 1963-1990.
PhD thesis, London School of Economics and Political Science.
Abstract
The Ph.D. thesis submitted under this title consists of three main parts. I start with a description of the regional labour markets in Spain in the last few years. It is followed by a theoretical model of interregional migration, to finish with an empirical exercise on the economic determinants of migration within Spain in recent years. The first two chapters are dedicated to analyze the composition of the two sides of the labour market, employment and unemployment, respectively, according to various dimensions, such as sectoral employment, sex, age, time unemployed. This study includes not only a description of the evolution along time for each region in Spain, but also a comparison of the relevant structures of the labour market across regions, paying particular attention to the degree of geographical homogeneity of both employment and unemployment. The theoretical part of the thesis consists of a model of interregional migration. Using recent developments in search theory, the idea consists of being able to specify a migration function from a micro-economic model of utility-maximizing individuals. Each individual will decide the proportion of the searching time he dedicates to search for a job in each region, as a function of, amongst other things, the probability of getting a job in each one of them. However, at the aggregate level we have to take into account the existence of an externality present in the model, as these probabilities depend on the allocation of searching time decided by the individuals. Once this system is solved, interregional migration appears, under certain assumptions, as the product of the number of effective job-seekers at any time from one region into another times the probability of getting a job in this other region. This model concludes with an study of the comparative statics of the migration function with respect to certain exogenous variables. Finally, the last part is dedicated to an estimation of the reduced form derived from the same principles as the theoretical model. It is done for the case of the migration flows that took place amongst the Spanish regions from 1963 till 1986, and it examines the economic determinants of interregional migration, addressing the issue of why these movements came down when they were more needed to reduce unemployment differentials.
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