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Geography, Migrations and Equilibrium Unemployment Author info | Abstract | Publisher info | Download info | Related research | Statistics Paolo Epifani (University of Parma and CESPRI)
Gino A. Gancia (IIES-Stockholm University)
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We study the effect of trade integration on the regional coevolution of income, migrations, and unemployment in a dynamic coreperiphery model with limited labor mobility and frictions in the job matching process. Our model can help explain a recently documented empirical puzzle, i.e., the divergence of unemployment rates, together with low migrations and modest income convergence experienced by European regions over the last twenty years. By studying explicitly the transitional dynamics of the model, we also highlight a contrast between short run and long run effects of trade and policy shocks on a geographically differentiated economy.
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Paper provided by Centro Studi Luca d\'Agliano, University of Milano in its series Development Working Papers with number
156.
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Date of creation: 01 Jul 2001Date of revision:
Handle: RePEc:csl:devewp:156Contact details of provider: Postal: Via Conservatorio 7 - 20122 Milano Phone: +39 02 50321522 Fax: +39 02 50321505 Web page: http://www.dagliano.unimi.it/ More information through EDIRC
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Keywords: Integration ; Agglomeration ; Regional Unemployment ; Europe ; Other versions of this item:
Find related papers by JEL classification: F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies F15 - International Economics - - Trade - - - Economic Integration F16 - International Economics - - Trade - - - Trade and Labor Market Interactions
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Annekatrin Niebuhr & Silvia Stiller, 2004.
"Integration and Labour Markets in European Border regions ,"
ERSA conference papers
ersa04p29, European Regional Science Association.
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Stephen Drinkwater & Paul Levine & Emanuela Lotti & Joseph Pearlman, 2003.
"The Economic Impact of Migration: A Survey ,"
Department of Economics Discussion Papers
0103, Department of Economics, University of Surrey.
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Basile, Roberto & Padoa Schioppa, Fiorella Kostoris, 2002.
"Unemployment Dynamics of the 'Mezzogiornos of Europe': Lessons for the Mezzogiorno of Italy ,"
CEPR Discussion Papers
3594, C.E.P.R. Discussion Papers.
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