Regional productivity differences provide scope for productivity-enhancing labor mobility. Redistribution reduces relocation incentives through higher taxes or lower transfers. Combining an intensive labor supply margin with an extensive, productivity-enhancing migration margin, we determine how...

Regional productivity differences are large and provide scope for productivity-enhancing inter-regional labor mobility. Using an optimal taxation framework that combines an intensive labor supply margin with an extensive, productivity- enhancing migration margin, we explore the implications of...

We analyze the optimal regional pattern of public employment in an information-constrained second-best redistribution policy showing that regionally differentiated public employment can serve as an expenditure side tagging device, bypassing or relaxing the equity-effciency trade-off. The optimal...

This paper is to analyze the effect of trade openness on regional inequality of South Korea. Trade has been the driving force of Korea's economic growth since the 1960's and it still expands its trade openness through active participation on bilateral and multilateral free trade agreements. In...

Do labor mobility, and co-worker networks contribute to convergence or divergence between regions? Based on the previous literature, labor mobility contributes to knowledge transfer between firms. Therefore, mobility may contribute to decreasing productivity differences, while limited mobility...

This paper examines changes in regional inequality in India in the 1990s, using data for 59 of India's 78 agro-climatic regions from the National Sample Survey. It extends the work of Singh et al. (2003) in two ways. First, it allows for differences in baseline growth performance across...

Spatial wage differences other incentives to change the location of work either by commuting or by moving to the new work location. Combining an intensive labor supply margin with an extensive, productivity-enhancing margin of work place change due to commuting or moving, I study how spatial...