Will the projected decline in the youth share of European countries' populations alleviate the currently high levels of youth unemployment in Europe? Economic theory predicts that in the absence of perfectly competitive labour markets, changes in the relative size of age groups will cause...

As an old Chinese proverb says, "visiting monks give better sermons." European soccer clubs also believe this, and have always been seeking for foreign players to boost competitiveness. However, due to the reason of protectionism, there were restrictions that each club was only allowed to field...

In this paper, I develop a simple model of spatial equilibrium to investigate theoretically what determines the sign and magnitude of ``local multipliers' (defined as elasticity of employment in the non-tradable sector with respect to increase in employment in the tradable sector). I estimate...

I show that the nontradable sector of a regional economy benefits from attracting jobs in the tradable sector. I find that on average one new job in a tradable industry in a city will attract 1.02 extra jobs in the nontradable sector of that same city. This local multiplier effect increases with...

A key aspect of understanding how regions grow is the interplay between jobs in the tradable and jobs in the non-tradable sector. Jobs in the tradable sector supply the world market and can therefore move from region to region, but every region has a local demand for non-tradable goods and the...

A distinctive feature of unemployment is that its incidence is far from being homogeneously distributed in the territory. Disparities in unemployment rates are not only observed between countries but also between regions within countries. The available evidence indicates that since the early 80s...

We start referring to the striking phenomena that over the past decades commuting distances in Germany have steadily risen, although commuting costs increased over-proportionally. This is surprising, as urban economic theory predicts increasing commuting distances especially for higher income,...

Russia is one of the most heterogeneous countries, consisting of more than 80 regions. Among other features, its regions vary by their involvement in international trade and by vulnerability to external shocks. Russian economy is becoming more open, but openness of regions varies greatly,...

After the price liberalization in 1991, the Russian economy was faced with a jump of costs of transportation in real terms. New Economic Geography (NEG) gives answers to questions that are related to changes in transport costs. However, the outcomes of NEG models are very sensitive with respect...