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Interregional migration 'wage premia': the case of creative and science and technology graduates in the UK

Jewell, S. and Faggian, A. (2014) Interregional migration 'wage premia': the case of creative and science and technology graduates in the UK. In: Kourtit, K., Nijkamp, P. and Stimson, R. (eds.) Applied Modeling of Regional Growth and Innovation Systems. Advances in Spatial Science. Springer, pp. 197-216.

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We analyze the migration behavior of graduates from UK universities with a focus on the salary benefits they receive from the migration process. We focus on sequential interregional migration and specifically examine the case of Science, Technology, Engineering and Mathematics (STEM) and Creative subject graduates. Our analysis differs from previous studies in that it accounts explicitly for migrant selectivity through propensity score matching, and it also classifies graduates into different migration behavior categories. Graduates were classified according to their sequential migration behavior first from their pre-university domicile to university and then from university to first job post-graduation. Our results show that ‘repeat migration’, as expected, is associated with the highest wage premium (around 15%). Other migration behaviors are also advantageous although this varies across different types of graduates. Creative graduates, for instance, do not benefit much from migration behaviors other than repeat migration. STEM graduates, on the contrary, benefit from both late migration and staying in the university area to work.

Item Type:Book or Report Section
Divisions:Arts, Humanities and Social Science > School of Politics, Economics and International Relations > Economics
ID Code:36157

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