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Labour migration in Europe and the New Economic Geography

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  • Mark Thissen

    ()

  • Frank Van Oort

    ()

Abstract

This paper addresses consequences of increased labour migration in Europe due to productivity effects in a core-periphery model. Traditional trade and growth models predict an overall beneficial impact of the accession of the current candidate states to the European Union. However, models incorporating imperfect competition warn that peripheral countries may realise only a small portion of this beneficial impact of the accession. In this chapter we go a step further: On the domestic level the countries accession may have negative effects while on the nationals level the effect will be positive. An empirical indication that benefits of accession may be low is the marginal benefits during the early phases of EU membership for Greece and Ireland and the Neue Länder of Germany. The following main questions are addressed in this chapter. What is the consequence of increased migration within the European Union due to deregulation in the context of the creation of a common market, and what will be the consequence of the extension of the European union with central and eastern European countries?

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Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa04p449.

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Date of creation: Aug 2004
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Handle: RePEc:wiw:wiwrsa:ersa04p449

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  1. Anthony J. Venables, 1993. "Equilibrium Locations of Vertically Linked Industries," CEP Discussion Papers, Centre for Economic Performance, LSE dp0137, Centre for Economic Performance, LSE.
  2. F Harrigan & P G McGregor & J K Swales & N Dourmashkin, 1992. "Imperfect competition in regional labour markets: a computable general equilibrium analysis," Environment and Planning A, Pion Ltd, London, Pion Ltd, London, vol. 24(10), pages 1463-1481, October.
  3. Masahisa Fujita & Paul Krugman & Anthony J. Venables, 2001. "The Spatial Economy: Cities, Regions, and International Trade," MIT Press Books, The MIT Press, The MIT Press, edition 1, volume 1, number 0262561476, December.
  4. Mark D. Partridge & Dan S. Rickman, 1998. "Regional Computable General Equilibrium Modeling: A Survey and Critical Appraisal," International Regional Science Review, , , vol. 21(3), pages 205-248, December.
  5. Dixit, Avinash K & Stiglitz, Joseph E, 1977. "Monopolistic Competition and Optimum Product Diversity," American Economic Review, American Economic Association, American Economic Association, vol. 67(3), pages 297-308, June.
  6. Ethier, Wilfred J, 1982. "National and International Returns to Scale in the Modern Theory of International Trade," American Economic Review, American Economic Association, American Economic Association, vol. 72(3), pages 389-405, June.
  7. Ommeren, J.N. van & Rietveld, P., 2002. "A multiregional equilibrium search model for the labour market," Serie Research Memoranda, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics 0018, VU University Amsterdam, Faculty of Economics, Business Administration and Econometrics.
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