Eggert, Wolfgang; Krieger, Tim; Meier, Volker - ifo Leibniz-Institut für Wirtschaftsforschung an der … - 2009
This paper studies a two-region model in which unemployment, education decisions andinterregional migration are … reduceswages of the unskilled. Both education and migration decisions are distorted by auniform unemployment compensation, which … endogenous. The poorer region exhibits both lower wagesand higher unemployment rates, and migrants to the richer region are …