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Evolution of the Labor Market in a Regional City: The Changing Economic Performance of Emigrants from Mexico City

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  • Ricardo Sabates

Abstract

. This paper draws on micro‐level data to fully inform the debate on decentralization and regional development. Using labor‐income trajectories of emigrants from Mexico City, the paper analyzes how the labor market in a regional city, Leon, evolves. Results from the econometric model suggest that migrants’ labor‐income trajectories differ between the large agglomeration and the regional city in an early stage of the evolution of the labor market, but converge in a later stage. Specifically, the slope of the earning function for recent migrants is steeper and statistically different from the slope for early migrants. The findings presented in this paper enrich the existing theory by providing microfoundations to a typically macroeconomic area of research and enable policy makers to better understand the processes underpinning the evolution of regional labor markets.

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  • Ricardo Sabates, 2005. "Evolution of the Labor Market in a Regional City: The Changing Economic Performance of Emigrants from Mexico City," Journal of Regional Science, Wiley Blackwell, vol. 45(3), pages 519-538, August.
    • Handle: RePEc:bla:jregsc:v:45:y:2005:i:3:p:519-538
    DOI: 10.1111/j.0022-4146.2005.00382.x
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    1. Krugman, Paul & Elizondo, Raul Livas, 1996. "Trade policy and the Third World metropolis," Journal of Development Economics, Elsevier, vol. 49(1), pages 137-150, April.
    2. Au, Chun-Chung & Henderson, J. Vernon, 2006. "How migration restrictions limit agglomeration and productivity in China," Journal of Development Economics, Elsevier, vol. 80(2), pages 350-388, August.
    3. David Orr, 1999. "Book," Journal of Industrial Ecology, Yale University, vol. 3(4), pages 155-156, October.
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    Cited by:

    1. Rachel Sabates-Wheeler & Ricardo Sabates & Adriana Castaldo, 2008. "Tackling Poverty-migration Linkages: Evidence from Ghana and Egypt," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 87(2), pages 307-328, June.
    2. Ren Lu & Torger Reve & Jing Huang & Ze Jian & Mei Chen, 2018. "A Literature Review Of Cluster Theory: Are Relations Among Clusters Important?," Journal of Economic Surveys, Wiley Blackwell, vol. 32(4), pages 1201-1220, September.

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