D4 Published development or research report or study
Losing a Job and (Dis)incentives to Move (2019)
Työpaikan menetys ja alueellisen muuttoliikkeen kannustimet

Maczulskij, T., & Böckerman, P. (2019). Losing a Job and (Dis)incentives to Move. Elinkeinoelämän tutkimuslaitos. ETLA Working Papers, 75. https://www.etla.fi/julkaisut/losing-a-job-and-disincentives-to-move/

JYU authors or editors

Publication details

All authors or editors: Maczulskij, Terhi; Böckerman, Petri

Journal or series: ETLA Working Papers

ISSN: 2323-2420

eISSN: 2323-2439

Publication year: 2019

Number in series: 75

Number of pages in the book: 43

Publisher: Elinkeinoelämän tutkimuslaitos

Place of Publication: Helsinki

Publication country: Finland

Publication language: English

Persistent website address: https://www.etla.fi/julkaisut/losing-a-job-and-disincentives-to-move/

Publication open access: Openly available

Publication channel open access: Open Access channel

Publication is parallel published (JYX): https://jyx.jyu.fi/handle/123456789/67593


We examine the economic determinants of interregional mobility. Using plant closures and mass lay-offs for identification, we show that there are obstacles in the labor market that prevent a more efficient reallocation of unemployed individuals and jobs. We find that displacement increases the migration probability by ~80 percent. Displaced workers mostly make migration decisions based on economic (dis)incentives, i.e., higher expected wages and lower expected housing prices outside the origin home location increase the probability of moving after a job loss. In contrast, proximity to family, home ownership and poorly functioning housing markets constitute severe constraints for migration. This outcome is concerning for employment prospects, as, among displaced workers, migration is positively linked to a strong attachment to the labor market.

Keywords: labour market; mobility of labour; unemployment; internal migration; social capital

Free keywords: displacement; housing markets; expected income; labor market outcomes

Contributing organizations

Related projects

Ministry reporting: Yes

Reporting Year: 2019

Last updated on 2022-20-09 at 15:26