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Income convergence, migration and geography: Distribution analysis of regions in Norway

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  • Hildegunn Stokke

    ()

  • J√âˆrn Ratts√âˆ

Abstract

Empirical evidence about income convergence among regions and countries is inconclusive and it is necessary to clarify the economic and institutional conditions for convergence. We investigate movements in the income distribution among regions in an integrated market with high mobility of labor, capital, knowledge and technology - municipalities and economic regions in Norway. Large and persistent population flows from the periphery towards urban centers characterize the economic development. The convergence towards a narrower unimodal distribution of per capita income is convincing in this homogenous institutional setting. Kernel density functions and finite first order Markov chains are estimated and tested, in particular with respect to the role of migration. Interestingly, migration seems to be unimportant for the convergence process, at odds with the recent emphasis on agglomeration effects and divergence. The population flows to urban centers do not generate growth processes where the income level in cities takes off compared to the periphery. The convergence process is slow, however, and the evolving regional income pattern seems to reflect differences in permanent regional factors.

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Paper provided by European Regional Science Association in its series ERSA conference papers with number ersa10p174.

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Date of creation: Sep 2011
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Handle: RePEc:wiw:wiwrsa:ersa10p174

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  1. Joern Rattsoe & Hildegunn Ekroll Stokke, 2009. "Regional income convergence, skilled migration and productivity response: Explaining relative stagnation in the periphery," Working Paper Series, Department of Economics, Norwegian University of Science and Technology 9809, Department of Economics, Norwegian University of Science and Technology.
  2. Shorrocks, A F, 1978. "The Measurement of Mobility," Econometrica, Econometric Society, Econometric Society, vol. 46(5), pages 1013-24, September.
  3. Barro, Robert T. & Sala-I-Martin, Xavier, 1992. "Regional growth and migration: A Japan-United States comparison," Journal of the Japanese and International Economies, Elsevier, vol. 6(4), pages 312-346, December.
  4. de la Fuente, Angel, 1996. "On the Sources of Convergence: A Close Look at the Spanish Regions," CEPR Discussion Papers, C.E.P.R. Discussion Papers 1543, C.E.P.R. Discussion Papers.
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  7. Riccardo DiCecio & Charles S. Gascon, 2008. "Convergence in the United States: a tale of migration and urbanization," Working Papers, Federal Reserve Bank of St. Louis 2008-002, Federal Reserve Bank of St. Louis.
  8. Thomas Aronsson & Johan Lundberg & Magnus Wikstrom, 2001. "Regional Income Growth and Net Migration in Sweden, 1970-1995," Regional Studies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 35(9), pages 823-830.
  9. Danny Quah, 1992. "Empirical cross-section dynamics in economic growth," Discussion Paper / Institute for Empirical Macroeconomics, Federal Reserve Bank of Minneapolis 75, Federal Reserve Bank of Minneapolis.
  10. Ceren Ozgen & Peter Nijkamp & Jacques Poot, 2010. "The effect of migration on income growth and convergence: Meta-analytic evidence," Papers in Regional Science, Wiley Blackwell, Wiley Blackwell, vol. 89(3), pages 537-561, 08.
  11. Edward L. Glaeser & Joshua D. Gottlieb, 2009. "The Wealth of Cities: Agglomeration Economies and Spatial Equilibrium in the United States," Journal of Economic Literature, American Economic Association, American Economic Association, vol. 47(4), pages 983-1028, December.
  12. Ceren Ozgen & Peter Nijkamp & Jacques Poot, 2009. "The Effect of Migration on Income Convergence: Meta-Analytic Evidence," Tinbergen Institute Discussion Papers, Tinbergen Institute 09-022/3, Tinbergen Institute.
  13. Quah, Danny, 1993. " Galton's Fallacy and Tests of the Convergence Hypothesis," Scandinavian Journal of Economics, Wiley Blackwell, Wiley Blackwell, vol. 95(4), pages 427-43, December.
  14. Reichlin, Pietro & Rustichini, Aldo, 1998. "Diverging patterns with endogenous labor migration," Journal of Economic Dynamics and Control, Elsevier, Elsevier, vol. 22(5), pages 703-728, May.
  15. Magrini, Stefano, 1999. "The evolution of income disparities among the regions of the European Union," Regional Science and Urban Economics, Elsevier, Elsevier, vol. 29(2), pages 257-281, March.
  16. Jordan M. Rappaport, 2000. "How Does Labor Mobility Affect Income Convergence?," Econometric Society World Congress 2000 Contributed Papers, Econometric Society 0124, Econometric Society.
  17. Stein �stbye & Olle Westerlund, 2007. "Is Migration Important for Regional Convergence? Comparative Evidence for Norwegian and Swedish Counties, 1980-2000," Regional Studies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 41(7), pages 901-915.
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