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Differential labour mobility and agglomeration

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  • Stephan Russek

Abstract

This paper develops an analytically solvable new economic geography model in which not only skilled, self‐employed labour is mobile, but also the unskilled labour force. Unskilled labour mobility increases the agglomeration incentive of skilled labour and influences the pattern of agglomeration. At high levels of trade costs, skilled and unskilled labour migration reinforce each other leading to agglomeration of both types of labour in the same region. For lower levels of trade costs, unskilled labour remigrates, whereas skilled labour remains concentrated. Resumen Este artículo desarrolla un modelo de nueva geografía económica que se puede resolver analíticamente en el que no son solamente móviles los trabajadores cualificados y por cuenta propia sino también la mano de obra no cualificada. La movilidad laboral no cualificada aumenta el incentivo de aglomeración de la mano de obra cualificada e influye en el patrón de aglomeración. Con costos de comercio elevados, la migración de mano de obra cualificada y no cualificada se refuerzan entre sí, produciendo una aglomeración de ambos tipos de mano de obra dentro de la misma región. Con costos de comercio bajos, la mano de obra no cualificada reemigra, mientras que la mano de obra cualificada permanece concentrada.

Suggested Citation

  • Stephan Russek, 2010. "Differential labour mobility and agglomeration," Papers in Regional Science, Wiley Blackwell, vol. 89(3), pages 587-606, August.
  • Handle: RePEc:bla:presci:v:89:y:2010:i:3:p:587-606
    DOI: 10.1111/j.1435-5957.2009.00269.x
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    2. Torben Dall Schmidt & Peter Sandholt Jensen, 2012. "Social networks and regional recruitment of foreign labour: Firm recruitment methods and spatial sorting in Denmark," Papers in Regional Science, Wiley Blackwell, vol. 91(4), pages 795-821, November.

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