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Regional growth centres - the most attractive location in Finland?

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  • Pekkala, Sari

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Abstract

The present study analyses migration patterns in Finland to test if micro- economic evidence for the Harris-Todaro model is found. The H-T hypothesis states that rural-urban migration is a results of differences in expected earnings and employment prospects. In addition to the basic framework factors such as distance-decay and human capital accumulation are considered. The recent migration trend in Finland show concentration of population in a handful of urban growth centres. Human capital is flowing towards those regions while rural areas are losing theirs. In recent years this tends has become more apparent, though the analysis of long-run trends shows that the urban pattern has been developing over several decades. Both the H-T hypothesis and the distance-decay hypothesis are supported by the data. Human capital (young, educated individuals) shows also greater concentration, as expected.

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File URL: http://www-sre.wu-wien.ac.at/ersa/ersaconfs/ersa02/cd-rom/papers/087.pdf
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Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa02p087.

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Date of creation: Aug 2002
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Handle: RePEc:wiw:wiwrsa:ersa02p087

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  1. Mincer, Jacob, 1978. "Family Migration Decisions," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 86(5), pages 749-73, October.
  2. Krugman, Paul & Venables, Anthony J., 1990. "Integration and the Competitiveness of Peripheral Industry," CEPR Discussion Papers, C.E.P.R. Discussion Papers 363, C.E.P.R. Discussion Papers.
  3. Krugman, Paul, 1991. "Increasing Returns and Economic Geography," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 99(3), pages 483-99, June.
  4. Todaro, Michael P., 1976. "Urban job expansion, induced migration and rising unemployment : A formulation and simplified empirical test for LDCs," Journal of Development Economics, Elsevier, Elsevier, vol. 3(3), pages 211-225, September.
  5. Lucas, Robert E B, 1985. "Migration amongst the Botswana," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 95(378), pages 358-82, June.
  6. Cole, William E & Sanders, Richard D, 1985. "Internal Migration and Urban Employment in the Third World," American Economic Review, American Economic Association, American Economic Association, vol. 75(3), pages 481-94, June.
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