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Effects of transportation barriers on geographic asymmetries in labour markets

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  • Thorsen, Helge Sandvig
  • Thorsen, Inge

Abstract

The main motivation of this paper is to derive testable predictions on how investments in transport infrastructure might influence spatial wage disparities and commuting flows in a region where a topographical barrier separates the geography into two areas. Wages and commuting flows result from a labour market equilibrium with duopsonistic wage-setting. The results provide important input both for the conduction of cost benefit assessments, and for a discussion of wider impacts of transport investments. The analysis distinguishes between alternative types of equilibrium solutions, according to the direction of commuting flows between central and peripheral areas of the region, and the analysis also derives the conditions under which each type of equilibrium solution will be realized.

Suggested Citation

  • Thorsen, Helge Sandvig & Thorsen, Inge, 2017. "Effects of transportation barriers on geographic asymmetries in labour markets," Research in Transportation Economics, Elsevier, vol. 63(C), pages 27-37.
    • Handle: RePEc:eee:retrec:v:63:y:2017:i:c:p:27-37
    DOI: 10.1016/j.retrec.2017.07.005
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    2. Mao, Xia & Chen, Xiao, 2023. "Does airport construction narrow regional economic disparities in China?," Journal of Air Transport Management, Elsevier, vol. 108(C).

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    More about this item

    Keywords

    Wage disparities; Commuting; Transportation barrier; Duopsony; Wider impact;
    All these keywords.

    JEL classification:

    • R32 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Other Spatial Production and Pricing Analysis
    • R40 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - General
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials

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