Testing the Regional Restructuring Hypothesis in Western Germany

In this paper we test the importance of the regional restructuring hypothesis by investigating whether the internal migration flows in western Germany can be explained by employment changes, on the basis of data of out-migration of employed workers and employment in seventy-five regions over the period 1982–97 for each year separately. Starting from a conditional probability model for the unobserved individual migration decisions, we derive mathematically a dynamic version of the Poisson gravity model for the total out-migration per region per year. Estimating this model for each year separately, we find partial confirmation of the regional restructuring hypothesis.