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The Efficiency Basis for Regional Employment Policy

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  • Robin Boadway
  • Frank Flatters

Abstract

Is 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 Info

Paper provided by Queen's University, Department of Economics in its series Working Papers with number 341.

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Length: 40
Date of creation: 1979
Date of revision:
Handle: RePEc:qed:wpaper:341

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Cited by:
  1. Gerry Boyle & Tom McCarthy & Jim Walsh, 1999. "Regional Income Differentials and the Issue of Regional Equalisation in Ireland," Economics, Finance and Accounting Department Working Paper Series n880499, Department of Economics, Finance and Accounting, National University of Ireland - Maynooth.
  2. Glenn Jenkins & Chun-Yan Kuo & Arnold C. Harberger, 2011. "Cost-Benefit Analysis for Investment Decisions: Chapter 12 (The Economic Opportunity Cost of Labor)," Development Discussion Papers 2011-12, JDI Executive Programs.
  3. Strain, J. Frank, 1993. "Integration, Federalism and Cohesion in the European Community: Lessons from Canada," Research Series, Economic and Social Research Institute (ESRI), number PRS16.
  4. Surendra Gera, 1987. "An Evaluation of the Canadian Employment Tax Credit Program," Canadian Public Policy, University of Toronto Press, vol. 13(2), pages 196-207, June.
  5. Glenn P. Jenkins, 1981. "The Public-Sector Discount Rate for Canada: Some Further Observations," Canadian Public Policy, University of Toronto Press, vol. 7(3), pages 399-407, Summer.

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