The migration of university graduates:A comparative analysis of capital and peripheral regions

Several studies have documented that highly educated citizens contribute to regional economic performance (Moretti, 2013; Faggian and McCann,2009b; Sterlacchini 2008). Moreover, Åstebro et al. (2012) emphasize the importance of promoting start-up by recent university graduates. Thus, the retention of university graduates is an important issue for regional policy makers. The present paper analyzes the migration patterns of university graduates from two very different regions in Denmark: the Greater Capital region around Copenhagen and the peripheral region of North Denmark. Studies of the migration of university graduates have been carried out in several countries. These studies are typically based on extensive surveys among recent graduates. The present analysis differs from such studies through its application of register data for all individuals and companies in Denmark, which allows us to identify the place of residence and employment of all university graduates over time. The analysis focuses on people who have graduated from a university in the Greater Capital region around Copenhagen or in the North Denmark peripheral region during the period 2000-2010.We study migration when enrolling in university as well as migration after graduation using the terminology of Faggian and McCann (2009a). Graduates’ migration is mainly studied in relation to first employment. The analysis also includes the migration of university graduates who become entrepreneurs. The different migration patterns are combined with measures of performance for wage-earners, expressed as level and growth rate of hourly wages, and for entrepreneurs, expressed as firm survival and growth in sales and employees.