The Efficiency Basis for Regional Employment Policy
AbstractIs there a theoretical basis for subsidizing employment in low-income regions? A two-region model is analyzed where there is migration of labour between regions, costs of migration, and unemployment in the low-income region. Workers migrate according to the expected wage net of the cost of migration. When there are no transfers, an unambiguous case can be made for encouraging employment in the poor region. However, when transfers to residents of the low-income region exist, the case becomes ambiguous.
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Bibliographic InfoPaper provided by Queen's University, Department of Economics in its series Working Papers with number 341.
Date of creation: 1979
Date of revision:
Other versions of this item:
- Robin W. Boadway & Frank R. Flatters, 1981. "The Efficiency Basis for Regional Employment Policy," Canadian Journal of Economics, Canadian Economics Association, vol. 14(1), pages 58-77, February.
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