Differential labor mobility, agglomeration, and skill-biased migration policies
AbstractThe 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.
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Bibliographic InfoPaper provided by Bavarian Graduate Program in Economics (BGPE) in its series Working Papers with number 072.
Length: 34 pages
Date of creation: May 2009
Date of revision:
agglomeration; labor mobility; economic geography; skill-biased migration policies Welfare;
Find related papers by 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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