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Current developed economies' growth becomes increasingly dependent on the performance of innovation and skill-intensive industries. Therefore, the ability of cities to attract skilled or highly-educated individuals becomes more and more important for their growth and economic development. In...
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Research has shown a limited labor mobility response to trade shocks. However, existing studies of aggregate mobility may miss important heterogeneity. This paper proposes a mechanism through which local labor markets adjust to trade shocks, namely immigrant mobility. I find a relative decline...
Persistent link: https://www.econbiz.de/10014076775
This paper presents a simple Chamberlinian agglomeration model which, like the canonical core-periphery (CP) model, contains two agglomerative forces. However, in contrast to that model, the present model is analytically solvable. Moreover, the present model exhibits a 'supercritical pitchfork...
Persistent link: https://www.econbiz.de/10011438277
New economic geography focuses on the impact of falling transport costs on the spatial distribution of activities. However, it disregards the role of technological innovations, which are central to modern economic growth, as well as the role of migration costs, which are a strong impediment to...
Persistent link: https://www.econbiz.de/10011499913
We build a dynamic model of migration where, in addition to classical mobility costs, workers face informational frictions that decrease their ability to compete for distant job opportunities. We structurally estimate the model on a matched employer-employee panel dataset describing labor market...
Persistent link: https://www.econbiz.de/10011617382
This paper presents a simple, analytically solvable Chamberlinian agglomeration model. As in the canonical core-periphery (CP) model, two agglomerative forces are at work. However, the present model exhibits a "pitchfork bifurcation" rather than the "tomahawk bifurcation" of the CP model.
Persistent link: https://www.econbiz.de/10011403753
The paper analyzes the impact of skill-biased migration policies under the economics of agglomeration. It therefore develops an agglomeration model with two types of mobile worker who are heterogeneous and differ both within and between skill groups with respect to their migration propensity. On...
Persistent link: https://www.econbiz.de/10003843425
In this paper, we analyse the implications of labour market integration in a two-region model with local human capital externalities and congestion effects. We show that integration can be a double-edged sword. Integration and the ensuing agglomeration of skilled labour can reduce "real" income...
Persistent link: https://www.econbiz.de/10010403243