Can we get them moving? The impact of mobility assistance on cross-country migration of young adults in Europe

Abstract

Cross-country migration in Europe can have multiple advantages. Among others, it can function as a buffer against economic downturns that come along with inferior employment and education opportunities, especially for young adults. However, cross-country mobility of young adults in Europe remains low, as language barriers, the loss of social ties or cultural differences create obstacles for migration. Against this background, Germany has launched a mobility assistance programme that supports young adults from EU member states who wish to enter the dual education system in Germany. To assess the causal impact of this programme, we compare migration flows to Germany from participating and non-participating countries in a difference-in-differences framework. Our results reveal a substantial programme effect that is larger for countries with above-average youth unemployment rates. These results add to previous migration research and reveal that migration flows are indeed sensitive to policy initiatives aimed at increasing migration.