Migration and Regional Disparities: the Role of Skill Biased Flows
AbstractThe persistence of disparities is one of the most striking features of regional development. We argue that movements of labour force, instead of being an always equilibrating mechanism, can also make persistent or even reinforce such inequalities. The most advanced regions are in fact generally more attractive, in terms of opportunities, especially to more qualified workers, who, in turn, are an essential ingredient of regional development and competitiveness because of the human capital they bear. We set up a two-regional framework, with a continuum of different skill- type individuals. Each agent’s utility function depends on the wage she earns through her skills, leaving the process of human capital formation out of this paper. Within this framework, we identify and model two complementary mechanisms for skill biased migration flows to take place. The first one resides in the way wages are set. If, in fact, the most skilled workers are not paid their productivity because of wage compression, they will have an incentive to move towards regions with a more dispersed wage scheme. The second mechanism dwells in the existence of some regional specific immobile assets, which make workers di®erently productive in different regions; this happens to a larger extent for those endowed with highest skills, which will therefore be more likely to overcome the mobility costs. Hence a Kaldor-type cumulative process bearing persistent regional disparities is set up.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
Bibliographic InfoPaper provided by EconWPA in its series Urban/Regional with number 0407004.
Length: 33 pages
Date of creation: 15 Jul 2004
Date of revision:
Note: Type of Document - pdf; pages: 33
Contact details of provider:
Web page: http://126.96.36.199
Find related papers by JEL classification:
- J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
- J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
- R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
- R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy
This paper has been announced in the following NEP Reports:
- NEP-ALL-2004-07-18 (All new papers)
- NEP-GEO-2004-07-18 (Economic Geography)
- NEP-LAB-2004-07-18 (Labour Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Romer, Paul M, 1986.
"Increasing Returns and Long-run Growth,"
Journal of Political Economy,
University of Chicago Press, vol. 94(5), pages 1002-37, October.
- Diego Puga, 1996.
"The Rise and Fall of Regional Inequalities,"
CEP Discussion Papers
dp0314, Centre for Economic Performance, LSE.
- Jari Ritsila & Marko Ovaskainen, 2001. "Migration and regional centralization of human capital," Applied Economics, Taylor & Francis Journals, vol. 33(3), pages 317-325.
- Maurel, Francoise & Sedillot, Beatrice, 1999. "A measure of the geographic concentration in french manufacturing industries," Regional Science and Urban Economics, Elsevier, vol. 29(5), pages 575-604, September.
- Beine, Michel & Docquier, Frédéric & Rapoport, Hillel, 2003.
"Brain Drain and LDCs' Growth: Winners and Losers,"
IZA Discussion Papers
819, Institute for the Study of Labor (IZA).
- Donald R. Davis & David E. Weinstein, 2002.
"Technological superiority and the losses from migration,"
0102-60, Columbia University, Department of Economics.
- Donald R. Davis & David E. Weinstein, 2002. "Technological Superiority and the Losses from Migration," NBER Working Papers 8971, National Bureau of Economic Research, Inc.
- 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.
- Commander, Simon & Kangasniemi, Mari & Winters, L. Alan, 2003. "The Brain Drain: Curse or Boon?," IZA Discussion Papers 809, Institute for the Study of Labor (IZA).
- Angel de la Fuente & Antonio Ciccone, 2003.
"Human capital in a global and knowledge-based economy,"
UFAE and IAE Working Papers
562.03, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
- Angel de la Fuente, 2003. "Human capital in a global and knowledge-based economy," UFAE and IAE Working Papers 576.03, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
- Angel de la Fuente & Antonio Ciccone, 2003. "Human capital in a global and knowledge-based economy," Working Papers 70, Barcelona Graduate School of Economics.
- Rikard Forslid & Gianmarco I.P. Ottaviano, 2003. "An analytically solvable core-periphery model," Journal of Economic Geography, Oxford University Press, vol. 3(3), pages 229-240, July.
- Jonathan Coppel & Jean-Christophe Dumont & Ignazio Visco, 2001. "Trends in Immigration and Economic Consequences," OECD Economics Department Working Papers 284, OECD Publishing.
- Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
- Wood, Adrian & Ridao-Cano, Cristobal, 1999. "Skill, Trade, and International Inequality," Oxford Economic Papers, Oxford University Press, vol. 51(1), pages 89-119, January.
- Philippe Martin, 1998. "Can Regional Policies Affect Growth and Geography in Europe?," The World Economy, Wiley Blackwell, vol. 21(6), pages 757-774, 08.
- Shields, Gail M & Shields, Michael P, 1989. " The Emergence of Migration Theory and a Suggested New Direction," Journal of Economic Surveys, Wiley Blackwell, vol. 3(4), pages 277-304.
- Olivier Jean Blanchard & Lawrence F. Katz, 1992. "Regional Evolutions," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 23(1), pages 1-76.
- Chiara Bentivogli & Patrizio Pagano, 1999. "Regional Disparities and Labour Mobility: the Euro-11 versus the USA," LABOUR, CEIS, vol. 13(3), pages 737-760, 09.
- Krugman, Paul, 1991.
"Increasing Returns and Economic Geography,"
Journal of Political Economy,
University of Chicago Press, vol. 99(3), pages 483-99, June.
- Naude, Wim, 2008. "Conflict, Disasters, and No Jobs: Reasons for International Migration from Sub-Saharan Africa," Working Paper Series RP2008/85, World Institute for Development Economic Research (UNU-WIDER).
- Arntz, Melanie & Gregory, Terry & Lehmer, Florian, 2012.
"Unequal Pay or Unequal Employment? What Drives the Skill-Composition of Labor Flows in Germany?,"
Annual Conference 2012 (Goettingen): New Approaches and Challenges for the Labor Market of the 21st Century
62309, Verein für Socialpolitik / German Economic Association.
- Arntz, Melanie & Gregory, Terry & Lehmer, Florian, 2011. "Unequal pay or unequal employment? What drives the skill-composition of labor flows in Germany?," ZEW Discussion Papers 11-074, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- Grip Andries de & Fouarge Didier & Sauermann Jan, 2008.
"What affects international migration of European science and engineering graduates?,"
ROA Research Memorandum
006, Maastricht University, Research Centre for Education and the Labour Market (ROA).
- Andries de Grip & Didier Fouarge & Jan Sauermann, 2010. "What affects international migration of European science and engineering graduates?," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 19(5), pages 407-421.
- de Grip, Andries & Fouarge, Didier & Sauermann, Jan, 2009. "What Affects International Migration of European Science and Engineering Graduates?," IZA Discussion Papers 4268, Institute for the Study of Labor (IZA).
- Grip Andries de & Fouarge Didier & Sauermann Jan, 2008. "What affects international migration of European science and engineering graduates?," ROA Research Memorandum 006, Maastricht University, Research Centre for Education and the Labour Market (ROA).
- Alexander Kubis & Lutz Schneider, 2012.
"Human Capital Mobility and Convergence – A Spatial Dynamic Panel Model of the German Regions,"
IWH Discussion Papers
9, Halle Institute for Economic Research.
- Kubis, Alexander & Schneider, Lutz, 2012. "Human capital mobility and convergence : a spatial dynamic panel model of the German regions," IAB Discussion Paper 201223, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany].
- Terry Gregory & Melanie Arntz & Florian Lehmer, 2011. "Unequal Pay or Unequal Employment? What Drives the Self-Selection of Internal Migrants in Germany?," ERSA conference papers ersa11p972, European Regional Science Association.
- Gregory, Terry & Patuelli, Roberto, 2013.
"Regional age structure, human capital and innovation: Is demographic ageing increasing regional disparities?,"
ZEW Discussion Papers
13-057, ZEW - Zentrum für Europäische Wirtschaftsforschung / Center for European Economic Research.
- T. Gregory & R. Patuelli, 2013. "Regional Age Structure, Human Capital and Innovation - Is Demographic Ageing Increasing Regional Disparities?," Working Papers wp900, Dipartimento Scienze Economiche, Universita' di Bologna.
- Terry Gregory & Roberto Patuelli, 2013. "Regional Age Structure, Human Capital and Innovation - Is Demographic Ageing Increasing Regional Disparities?," Working Paper Series 51_13, The Rimini Centre for Economic Analysis.
- Ugo Fratesi, 2004.
"Regional policy from a supra-regional perspective,"
ERSA conference papers
ersa04p509, European Regional Science Association.
- 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, vol. 89(3), pages 537-561, 08.
- Ozgen, Ceren & Nijkamp, Peter & Poot, Jacques, 2009. "The Effect of Migration on Income Growth and Convergence: Meta-Analytic Evidence," IZA Discussion Papers 4522, Institute for the Study of Labor (IZA).
- Fratesi, Ugo, 2007. "The Spatial Diffusion of Innovations and the Evolution of Regional Disparities," Investigaciones Regionales, Asociación Española de Ciencia Regional, issue 11, pages 131-160.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (EconWPA).
If references are entirely missing, you can add them using this form.