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Differential labour mobility and agglomeration

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  • Russek, Stephan

Abstract

This paper develops an analytically solvable new economic geography model in which not only skilled, selfemployed 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.

Suggested Citation

Handle: RePEc:eee:paresc:v:89:y:2010:i:3:p:587-607
DOI: 10.1111/j.1435-5957.2009.00269.x
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JEL classification:

  • F12 - International Economics - - Trade - - - Models of Trade with Imperfect Competition and Scale Economies; Fragmentation
  • F15 - International Economics - - Trade - - - Economic Integration
  • F22 - International Economics - - International Factor Movements and International Business - - - International Migration
  • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)

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