Regional income convergence, skilled migration and productivity response: Explaining relative stagnation in the periphery
AbstractMost country growth experiences imply urbanization with labor migration from poor to rich regions and relative stagnation in the periphery. We study mechanisms holding back regional income convergence emphasizing the importance of productivity. Recent research has addressed the effects of labor mobility for income convergence in the neoclassical growth model, but finds that migration has limited effect on the convergence process. We build skilled labor migration into a multi-regional neoclassical growth model and assume that skilled labor affects productivity. The formulation takes advantage of open economy growth models where human capital influences innovation and technology adoption. Skilled labor outmigration from periphery regions reduces the capacity to generate productivity growth. Calibration of the regional growth model shows that skilled outmigration has quantitative importance for the growth performance of the periphery with realistic parameters. The analysis of the consequences of capital shock reproducing backwardness shows how migration equilibrium can be reestablished only after prolonged relative stagnation.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by Department of Economics, Norwegian University of Science and Technology in its series Working Paper Series with number 9809.
Length: 26 pages
Date of creation: 27 Jan 2009
Date of revision:
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Robert E. Lucas, Jr., 2007.
"Trade and the Diffusion of the Industrial Revolution,"
NBER Working Papers
13286, National Bureau of Economic Research, Inc.
- Robert E. Lucas, 2009. "Trade and the Diffusion of the Industrial Revolution," American Economic Journal: Macroeconomics, American Economic Association, vol. 1(1), pages 1-25, January.
- Francesco Caselli & Wilbur John Coleman II, 2000.
"The World Technology Frontier,"
NBER Working Papers
7904, National Bureau of Economic Research, Inc.
- Matsuyama, Kiminori, 1992.
"Agricultural productivity, comparative advantage, and economic growth,"
Journal of Economic Theory,
Elsevier, vol. 58(2), pages 317-334, December.
- Kiminori Matsuyama, 1991. "Agricultural Productivity, Comparative Advantage and Economic Growth," NBER Working Papers 3606, National Bureau of Economic Research, Inc.
- Kiminori Matsuyama, 1990. "Agricultural Productivity, Comparative Advantage, and Economic Growth," Discussion Papers 934, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Joshua Hojvat Gallin, 2004. "Net Migration and State Labor Market Dynamics," Journal of Labor Economics, University of Chicago Press, vol. 22(1), pages 1-22, January.
- Roback, Jennifer, 1982. "Wages, Rents, and the Quality of Life," Journal of Political Economy, University of Chicago Press, vol. 90(6), pages 1257-78, December.
- Jordan Rappaport, 1999.
"Local Growth Empirics,"
CID Working Papers
23, Center for International Development at Harvard University.
- repec:fth:stanho:e-92-3 is not listed on IDEAS
- Jérôme Vandenbussche & Philippe Aghion & Costas Meghir, 2006. "Growth, distance to frontier and composition of human capital," Journal of Economic Growth, Springer, vol. 11(2), pages 97-127, June.
- Rappaport, Jordan, 2004.
"Why are population flows so persistent?,"
Journal of Urban Economics,
Elsevier, vol. 56(3), pages 554-580, November.
- Jess Benhabib & Mark M. Spiegel, 2002.
"Human capital and technology diffusion,"
Working Paper Series
2003-02, Federal Reserve Bank of San Francisco.
- Jess Benhabib & Mark Spiegel, 2002. "Human capital and technology diffusion," Proceedings, Federal Reserve Bank of San Francisco, issue Nov.
- Benhabib, Jess & Spiegel, Mark M., 2005. "Human Capital and Technology Diffusion," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 13, pages 935-966 Elsevier.
- Jordan Rappaport, 1999.
"How does labor mobility affect income convergence?,"
Research Working Paper
99-12, Federal Reserve Bank of Kansas City.
- Rappaport, Jordan, 2005. "How does labor mobility affect income convergence?," Journal of Economic Dynamics and Control, Elsevier, vol. 29(3), pages 567-581, March.
- Jordan M. Rappaport, 2000. "How Does Labor Mobility Affect Income Convergence?," Econometric Society World Congress 2000 Contributed Papers 0124, Econometric Society.
- Paul Evans, 1997. "How Fast Do Economies Converge?," The Review of Economics and Statistics, MIT Press, vol. 79(2), pages 219-225, May.
- Benhabib, Jess & Spiegel, Mark M., 1994. "The role of human capital in economic development evidence from aggregate cross-country data," Journal of Monetary Economics, Elsevier, vol. 34(2), pages 143-173, October.
- Masahisa Fujita & Jacques-François Thisse, 2003.
"Does Geographical Agglomeration Foster Economic Growth? And Who Gains and Loses from It?,"
The Japanese Economic Review,
Japanese Economic Association, vol. 54(2), pages 121-145.
- Fujita, Masahisa & Thisse, Jacques-François, 2002. "Does Geographical Agglomeration Foster Economic Growth? And Who Gains and Looses From It?," CEPR Discussion Papers 3135, C.E.P.R. Discussion Papers.
- Jørn Rattsø & Hildegunn E. Stokke, 2011. "Migration and dynamic agglomeration economies: Regional income growth in Norway," Working Paper Series 11111, Department of Economics, Norwegian University of Science and Technology.
- Hildegunn Stokke & Jâˆšâˆrn Rattsâˆšâˆ, 2011. "Income convergence, migration and geography: Distribution analysis of regions in Norway," ERSA conference papers ersa10p174, European Regional Science Association.
- Elena Vakulenko, 2014. "Does migration lead to regional convergence in Russia?," HSE Working papers WP BRP 53/EC/2014, National Research University Higher School of Economics.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Marit Balstad Jensen) The email address of this maintainer does not seem to be valid anymore. Please ask Marit Balstad Jensen to update the entry or send us the correct address.
If references are entirely missing, you can add them using this form.