Structural Estimation and Interregional Labour Migration: Evidence from Japan
AbstractThis paper empirically tests relationships among interregional labour migration, wage, and real market potential (RMP) based on a multi-region economic geography model, which describes bilateral migration flows. We estimate a nonlinear gravity model using manufacturing workers' migration flows across the 47 Japanese prefectures. Estimates of structural parameters enable us to compute key variables of the model: price index, RMP, and real wage. We show that higher RMP regions can offer higher nominal wages. Furthermore, we find that an increase in the relative real wage of a region brings about a net increase in workers into the region.
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Bibliographic InfoPaper provided by Keio/Kyoto Joint Global COE Program in its series Keio/Kyoto Joint Global COE Discussion Paper Series with number 2011-040.
Length: 41 pages
Date of creation: Mar 2012
Date of revision:
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-03-21 (All new papers)
- NEP-GEO-2012-03-21 (Economic Geography)
- NEP-LAB-2012-03-21 (Labour Economics)
- NEP-MIG-2012-03-21 (Economics of Human Migration)
- NEP-URE-2012-03-21 (Urban & Real Estate Economics)
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