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...

Observing regions, for instance in Europe, one may easily notice inequalities in the resources they devote to innovation activities and in the results they reach in terms of economic success. In this respect, it may be assumed at first glance that a hierarchy of regional environment could be...