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Regional Intergration and Migration: An Economic Geography Model with Hetergenous Labour Force

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  • Nicola D. Coniglio

Abstract

This paper aims to analyse the effect of deepening regional integration on the incentive for factors of production, in particular labour, to spatially relocate. We adopt a general equilibrium, economic-geography model built on Krugman (1991) allowing for skill heterogeneity in the manufacturing sector. At a given level of trade costs, due to the productivity premium associated with the concentration of high-skilled workers in one region, this type of worker will be more willing to migrate than low-skilled ones. The paper shows the existence of a range of trade costs for which only high-skilled workers have an incentive to migrate. Therefore, introducing labour heterogeneity in the basic core-periphery model enables us to explain one of the most striking features of interregional migration patterns: the positive self-selection of the migrants.

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  • Nicola D. Coniglio, 2002. "Regional Intergration and Migration: An Economic Geography Model with Hetergenous Labour Force," Working Papers 2003_1, Business School - Economics, University of Glasgow.
    • Handle: RePEc:gla:glaewp:2003_1
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    Cited by:

    1. Nicola D. Coniglio & Francesco Prota, 2008. "Human capital accumulation and migration in a peripheral EU region: the case of Basilicata," Papers in Regional Science, Wiley Blackwell, vol. 87(1), pages 77-95, March.
    2. Richard E. Baldwin & Toshihiro Okubo, 2006. "Heterogeneous firms, agglomeration and economic geography: spatial selection and sorting," Journal of Economic Geography, Oxford University Press, vol. 6(3), pages 323-346, June.
    3. Hisamitsu Saito & Munisamy Gopinath & JunJie Wu, 2011. "Heterogeneous firms, trade liberalization and agglomeration," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 44(2), pages 541-560, May.

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