DP764 The Determinants of East-West German Migration: Some First Results

Author(s): Michael C Burda
Publication Date: January 1993
Keyword(s): Eastern Germany, German Socioeconomic Panel, Migration, Option Value of Waiting
JEL(s): J61
Programme Areas: Human Resources
Link to this Page: cepr.org/active/publications/discussion_papers/dp.php?dpno=764

The determinants of migration propensities of East Germans in the German Socioeconomic Panel are investigated. The option value of waiting is proposed to capture important aspects of the migration decision. Logit analysis of migration intentions reveals that age, rents, friends and relatives in the West, and urban characteristics weigh significantly in the migration calculus. Levels and growth rates of nominal wages have little explanatory power. Some policy implications of these preliminary results are discussed.