Reciprocal Link between Exit from Unemployment and Geographical Mobility

Abstract

Is geographical migration a consequence of the end of unemployment or does it help in finding a job? This question is approached within the general framework of human capital theory. Two main categories of determinants may be distinguished. The first is termed the decisionmaking context and groups factors which are intrinsic to the individual (such as gender or age) and factors which are related to spatial issues (such as employment or economic conditions in an area). The second category is formed by the human capital available at the moment of the choice. The aim of this paper is to take past investment into consideration and incorporate the fact that some decisions may be joint ones. A model is introduced in the form of a system of two simultaneous equations with qualitative endogenous variables. The test is based on a 1993 survey of 1176 young rural people of seven areas of France. A main finding is that migrations of young rural people are essentially the result of professional preoccupations. However, migration is not a factor which always helps in finding a job, when people are unemployed. When a young person has a good initial training, he or she has to migrate (and leave a rural area) to get a job. Yet, migration does not seem to be necessary for less trained people.