Saint-Paul, Gilles - C.E.P.R. Discussion Papers - 1997
both regions are set by the unions of the ‘West’ – the region with a greater initial relative stock of human capital. We … equilibrium, thereby generating unemployment in the ‘East’. This slows the migration of human capital towards the East, but … western region. Unions in the West will benefit from this, provided human capital has low migration costs relative to raw …