On Migration and Unemployment: Evidence from Italian Graduates

Abstract

This paper examines the impact of the unemployment rate on the decision to migrate among recent Italian graduates. A fixed-effects approach is used to avoid potential omitted variable problems. This method allows us to account for unobservable location-specific characteristics that are likely to be correlated with the unemployment rate and the probability that an individual migrates. The empirical results highlight the importance of controlling for location-specific effects and show that lower employment opportunities are likely to encourage people to migrate if they do not have a job, but exert no influence on those who are employed.