The labour market in Russia is very flexible. Firms adjust to economic shocks through wage cuts, working hour reductions and minimisation of non-wage labour costs. Workers react by changing jobs. This results in a high and stable overall employment rate, but also high wage inequality,...

We analyse how spatial disparities in innovation activities, coupled with migration costs, affect economic geography, growth and regional inequality. We provide conditions for existence and uniqueness of a spatial equilibrium, and for the endogenous emergence of industry clusters. Spatial...

Labor reallocation is often regarded as an essential component of productivity growth, based on the thought that innovation is made by firms expanding to new business areas with better technology (horizontal innovation). I study the relationship between long-run growth and labor reallocation by...