Transition Probabilities, Wages and Regional Human Capital Stocks (ESCoE DP 2022-28)

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Transition Probabilities, Wages and Regional Human Capital Stocks (ESCoE DP 2022-28)

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This paper aims to look at regional mobility in the UK and its impact on regional human capital stocks. We estimate regional transitions probabilities from and to regions. We do this using different regional aggregation levels, by demographics characteristics and education status. Our results show that mobility appears heavily concentrated amongst the young and educated populations. The results suggest little changes over recent periods. Using these regional mobility transitions, we find that regional human capital stocks can be misleading if one does not take into account regional mobility of young people.