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Kinetics of jobs in multi-link cities with migration-driven aggregation process

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  • Sun, Ruoyan
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    Abstract

    Immigration has long been a hotly debated issue. The core of this debate is immigrants' impact on local job markets. Some people insist that instead of creating more jobs, immigrants actually take away more jobs thus decrease the living standard of natives. Others argue that the presence of immigrants benefits the society as a whole since they enlarge the labor force and lower the production cost. In this paper, we propose a model describing the migration-driven aggregation behaviors in job markets with foreign immigration, and introduce the method of network and aggregation to look at this issue from a new perspective. We divide the job market in each city into two groups: native and immigrant. And we view each city as a node with l links; each link represents a way of transportation to other cities. Then it is not hard to see that cities with more links tend to be more job concentrated with larger flows of jobs. We assume that both native and immigrant job markets have a migration of jobs within themselves and the native ones have birth rate and death rate of jobs as well. Through analyzing different rates: K1 and K2, initial conditions, and the combined effect of birth rate and death rate, we are able to predict the changes of some variables in the long run. These changes indicate the impact of immigrants on native job markets. Thus provide some helpful information to this issue.

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    Bibliographic Info

    Article provided by Elsevier in its journal Economic Modelling.

    Volume (Year): 30 (2013)
    Issue (Month): C ()
    Pages: 36-41

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    Handle: RePEc:eee:ecmode:v:30:y:2013:i:c:p:36-41

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    Web page: http://www.elsevier.com/locate/inca/30411

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    Keywords: Job market; Migration; Aggregation process; Multilink;

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    1. Denise Eby Konan, 2010. "Limits to Growth: Tourism and Regional Labor Migration," Working Papers 2010-14, University of Hawaii Economic Research Organization, University of Hawaii at Manoa.
    2. Gupta, Manash Ranjan & Dutta, Priya Brata, 2011. "Skilled-unskilled wage inequality and unemployment: A general equilibrium analysis," Economic Modelling, Elsevier, vol. 28(4), pages 1977-1983, July.
    3. Zvi Eckstein & Suqin Ge & Barbara Petrongolo, 2011. "Job and wage mobility with minimum wages and imperfect compliance," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 26(4), pages 580-612, 06.
    4. Ulrich Horst & Jos´e A. Scheinkman, 2006. "A Limit Theorem for Systems of Social Interactions," Levine's Bibliography 321307000000000177, UCLA Department of Economics.
    5. Ziesemer, Thomas, 2009. "The Impact of the Credit Crisis on Poor Developing Countries: Growth, worker remittances, accumulation and migration," MERIT Working Papers 026, United Nations University - Maastricht Economic and Social Research Institute on Innovation and Technology (MERIT).
    6. Brito, Paulo & Dilão, Rui, 2010. "Equilibrium price dynamics in an overlapping-generations exchange economy," Journal of Mathematical Economics, Elsevier, vol. 46(3), pages 343-355, May.
    7. Bellaïche, Joël, 2010. "On the path-dependence of economic growth," Journal of Mathematical Economics, Elsevier, vol. 46(2), pages 163-178, March.
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