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Using a human capital based growth model, we show the essential role of labor mobility and cross-country tax harmonization in equalizing income levels of countries that start off from different initial income positions. Knowledge spillovers cum labor mobility are the driving forces behind the...
Persistent link: https://www.econbiz.de/10012473431
Several recent studies have examined the tendency of regions within a nation to exhibit long-term convergence in per … capita income levels. Barro and Sala-i-Martin (1991, 1992, 1995) have found a tendency towards convergence among the U … convergence among the provinces of China during the period 1952-1993. We find that real income convergence of provinces in China …
Persistent link: https://www.econbiz.de/10012473452
convergence within and across countries. Regional growth is shaped by similar factors as national growth, such as geography and … human capital. Regional convergence is about 2.5% per year, not more than 1% per year faster than convergence between … countries. Regional convergence is faster in richer countries, and countries with better capital markets. A calibration of a …
Persistent link: https://www.econbiz.de/10012459724
show that free trade can induce partial convergence, divergence or even a reversal of fortune in terms of the well-being of … workers in every country, while free trade and free labor mobility lead to full convergence. We also show that free trade and … Ricardian world, the lack of convergence in levels of well-being across countries can be attributed to an international …
Persistent link: https://www.econbiz.de/10012457393
. This helps explain why capital does not flow from rich to poor countries, causing instantaneous convergence of per capita …
Persistent link: https://www.econbiz.de/10012474088
We present a simple model of a two-region economy in which undesirable concentration may occur. With freedom to choose where to live, individuals in this economy concentrate into one region in their pursuit of better life, and end up becoming worse off. We characterize the conditions under which...
Persistent link: https://www.econbiz.de/10012474461
We exploit a series of discontinuities, at several population thresholds, in the allocation mechanism of federal transfers to municipal governments in Brazil to identify the causal effect of municipal spending on local labor markets, using a 'fuzzy' regression discontinuity design. Our estimates...
Persistent link: https://www.econbiz.de/10012457915
In this chapter we analyze immigration and its effect on urban and regional economies focusing on productivity and labor markets. While immigration policies are typically national, the effects of international migrants are often more easily identified on local economies. The reason is that their...
Persistent link: https://www.econbiz.de/10012458239
This paper presents a model where human capital differences - rather than technology differences - can explain several central phenomena in the world economy. The results follow from the educational choices of workers, who decide not just how long to train, but also how broadly. A "knowledge...
Persistent link: https://www.econbiz.de/10012464508
How much of the spatial distribution of economic activity today is determined by history rather than by geographic fundamentals? And if history matters for the distribution, does it also affect overall efficiency? This paper develops a tractable theoretical and empirical framework that aims to...
Persistent link: https://www.econbiz.de/10012482278