IDEAS home Printed from https://ideas.repec.org/a/oup/jecgeo/v23y2023i4p801-822..html

Matching and sorting across regions

Author

Listed:
  • Chiara Lacava

Abstract

This article measures the effects of workers’ mobility across regions characterised by different productivity levels through the lens of a search and matching model with heterogeneous workers and firms estimated using administrative data. In an application to Italy, the model estimates imply that the relocation of workers to the most productive region boosts employment and output at the country level, reduces inequality and widens productivity gaps. There is an interplay between the sorting of workers across regions and across firms, and migration mitigates the frictions caused by worker–firm sorting. The model allows for the evaluation of general equilibrium effects of place-based policies towards the least productive region. Subsidising the creation of high-technology jobs reduces migration substantially while increasing employment and productivity. In contrast, subsidies for hiring unemployed or high-skill migrants imply indirect effects that limit policy effectiveness.

Suggested Citation

  • Chiara Lacava, 2023. "Matching and sorting across regions," Journal of Economic Geography, Oxford University Press, vol. 23(4), pages 801-822.
    • Handle: RePEc:oup:jecgeo:v:23:y:2023:i:4:p:801-822.
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1093/jeg/lbac038
    Download Restriction: Access to full text is restricted to subscribers.
    ---><---

    As the access to this document is restricted, you may want to look for a different version below or

    for a different version of it.

    Other versions of this item:

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:oup:jecgeo:v:23:y:2023:i:4:p:801-822.. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Oxford University Press (email available below). General contact details of provider: https://academic.oup.com/joeg .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.