The economic geography of labour migration: Competition, competitiveness and development
AbstractThe present paper studies labour migration in the enlarged EU. Adopting the Krugman’s framework of the New Economic Geography, we are able to study both the determinants of labour migration, such as market potential, wages, cost of living on one hand, and labour migration on the other hand simultaneously, which allows us to address important issues facing the traditional reduced form studies. Our empirical findings suggest that European integration would trigger labour migration between and within the Member States of the enlarged EU. Given that in our framework migrants are attracted by market potential, but they also affect market potential, the emergence of a core-periphery pattern through labour migration not very likely in the enlarged EU.
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Bibliographic InfoPaper provided by Economics and Econometrics Research Institute (EERI), Brussels in its series EERI Research Paper Series with number EERI_RP_2006_01.
Length: 45 pages
Date of creation: Jan 2006
Date of revision:
New economic geography; Market potential; Labour migration; Economic integration;
Find related papers by JEL classification:
- F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
- L11 - Industrial Organization - - Market Structure, Firm Strategy, and Market Performance - - - Production, Pricing, and Market Structure; Size Distribution of Firms
- R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
- R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
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