Eggert, Wolfgang; Krieger, Tim; Meier, Volker - CESifo - 2007
This paper studies a two-region model in which unemployment, education decisions and interregional migration are … endogenous. The poorer region exhibits both lower wages and higher unemployment rates, and migrants to the richer region are … change reduces wages of the unskilled. Both education and migration decisions are distorted by a uniform unemployment …