How to woo the smart ones? Evaluating the determinants that particularly attract highly qualified people to cities

Human capital is a driving factor of innovation and economic growth. Urban economies in particular depend on highly qualified workers; therefore, attracting highly skilled workers is a key factor for cities’ economic prospects. We analyze the determinants that influence the migration of highly skilled workers by investigating the migration balance of German cities between 2000 and 2010. The study compares the significance of various work- and amenity-related variables for highly qualified workers and the remaining workforce. The findings suggest that local labor market conditions influence mobility decisions, but amenities matter, too. The preferences of highly qualified workers seem to differ somewhat from those of the rest of the workforce. However, there are also several factors that do not show systematic differences across skill groups.