Abstract
ABSTRACT Why are certain labour markets more resilient to economic shocks? Why are some economies deeply affected by migration? Modern migration theory remains based on simplistic neo-classical utility maximizing assumptions, despite a failure to fully answer real-world migration questions. The aim of this paper is to show that neo-classical dynamics are differentiated between subpopulations that make up the workforce. Using disaggregated data from Germany and a dynamic spatial vector autoregressive model that allows for spillovers, the paper teases out several aspects of regional labour market resilience. Results highlight that regions stand to benefit from supporting place-specific policies tailored to local circumstances.
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