How integrated are labor markets within a country? Labor mobility is key to the integration of local labor markets and therefore to understanding the efficacy of policies to reduce regional inequality. We present a comprehensive framework for understanding migration decisions, focusing on the...

We analyze the effect of interregional migration on regional unemployment in Italy. With the help of a simple two-region model adapted to the main features of the Italian NorthSouth dualism, we illustrate the effects of labor mobility with and without human capital externalities. Using...