Where Do the Highly Educated Migrate? Micro-Level Evidence from Finland

Abstract

This paper analyses the role which migration of highly educated labour plays in human capital reallocation. The study focuses on actual migrants, examining the direct effect of educational attainment on destination choices. The paper uses the ordered probability model and a micro-level data set in econometric analyses. Individual level investigations of migrants show that highly educated migrants are likely to move to urban regions. As a result, the reallocation of highly educated labour, and thereby also the redistribution of human capital, seems to be taking place in Finland.