Regional labor markets are characterized by huge disparities. The literature on the wage curve argues that there exists a negative relationship between unemployment and wages. However, this literature cannot explain how disparities of these variables between regions endogenously arise. In...

Regional labor markets are characterized by huge disparities between unemployment rates. Models of the New Economic Geography explain how disparities between regional goods markets endogenously arise but usually assume full employment. This paper discusses regional unemployment disparities by...

The world is becoming more interconnected, with an acceleration in the movement of information, capital, goods, services and people across international borders. As it becomes easier to travel and work in other countries – especially in common market areas such as the European Union – the...