CPB Netherlands Bureau for Economic Policy Analysis, The Hague;

Does migration serve as an effective channel of regional adjustment to idiosyncratic shocks in transition economies? If so, one should find a strong relationship between regional unemployment rates and wages, and migration flows. Yet, the evidence from the Czech Republic and Slovakia indicates that the efficacy of migration in reducing inter-regional unemployment and wage differentials has been low. High wages appear to stimulate overall mobility rather than encourage a net inflow, and the effect of unemployment is statistically weak and not robust. In addition, the effect of unemployment and wages on net migration flows is economically insignificant and the overall level of migration has fallen during transition