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Differential labor mobility, agglomeration, and skill-biased migration policies

Author

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  • Stephan Russek

Abstract

The paper analyzes the impact of skill-biased migration policies under the economics of agglomeration. It therefore develops an agglomeration model with two types of mobile worker who are heterogeneous and differ both within and between skill groups with respect to their migration propensity. On the one hand, the model reveals that the effectiveness of migration policies depends on the level on trade costs. On the other hand, it shows that increasing (reducing) political barriers to migration for one factor of production, reduces (increases) the migration incentive of the other. Consequently, pro-skilled and contra-unskilled migration policies attenuate each other or can even be counterproductive.

Suggested Citation

  • Stephan Russek, 2009. "Differential labor mobility, agglomeration, and skill-biased migration policies," Working Papers 072, Bavarian Graduate Program in Economics (BGPE).
    • Handle: RePEc:bav:wpaper:072_russek
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    File URL: http://www.bgpe.de/texte/DP/072_russek.pdf
    File Function: First version, 2009
    Download Restriction: no
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    More about this item

    Keywords

    agglomeration; labor mobility; economic geography; skill-biased migration policies Welfare;
    All these keywords.

    JEL classification:

    • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
    • F15 - International Economics - - Trade - - - Economic Integration
    • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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