Are there arty differences in how workers of different skill levels respond
to regional shocks? This paper addresses that question using the methodolo
gy of Blanchard and Katz (1992) and a unique data set on working-age popula
tion, labor force, and employment for five educational groups (ranging from
the illiterate to the college-educated) over 1964-92 for the 50 Spanish pr
ovinces. The paper finds that the highly skilled migrate very promptly in r
esponse to a decline il in regional labor demand, while low-skilled workers
drop out of the labor force or stay unemployed. [JEL E24, J61].