Why are internal migration rates so low in Italy and other European countries whereregional unemployment is high? The recent literature focuses on factors affecting labor supply: i.e.workers’ decisions to migrate and reservation wages. We emphasize the role of labor demand. Weargue that the shift from standardized methods of production to flexible production systems, whichoccurred in the last two decades, has increased the demand for skilled workers. In addition, as ithappens in Italian industrial districts, part of the human capital required is region specific -itbelongs to native workers, but can only be acquired at a positive cost by migrants. We provideempirical evidence and a theoretical model that show that this change in labor demand can explainthe reduction of internal migration flows.
Capitale umano specifico e flussi migratori / Murat, Marina Giovanna; Paba, Sergio. - In: RIVISTA DI POLITICA ECONOMICA. - ISSN 0035-6468. - STAMPA. - XCII (III-IV):(2002), pp. 63-108.