Low Occupational Prestige and Internal Migration in Germany

Abstract

This paper assesses a recent prediction of the theoretical migration literature, according to which migration may be driven by a desire to avoid social humiliation arising from occupational stigma. To this end, we study the residential mobility of workers in occupations with relatively low prestige using data from the German Socio-Economic Panel (SOEP). In order to capture low occupational prestige, we relate the prestige of a worker's current occupation to the average prestige of the occupations associated with the worker's vocational training. Our estimation results suggest a negative relationship between the incidence of low occupational prestige and the probability of internal migration in Germany and thus reject our working hypothesis. We discuss the role of specific migration costs and occupational cultures as possible explanations of this result. The absolute prestige level of a worker's occupation does not turn out to be a signicant predictor of his propensity to migrate, whereas his absolute income level - but not his relative income level - is signicantly positively related to this propensity.