IDEAS home Printed from
   My bibliography  Save this paper

Structural Estimation and Interregional Labour Migration: Evidence from Japan


  • Keisuke Kondo

    (Graduate School of Economics, Kobe University)

  • Toshihiro Okubo

    (Faculty of Economics, Keio University)


This paper empirically tests relationships among interregional labour migration, wage, and real market potential (RMP) based on a multi-region economic geography model, which describes bilateral migration flows. We estimate a nonlinear gravity model using manufacturing workers' migration flows across the 47 Japanese prefectures. Estimates of structural parameters enable us to compute key variables of the model: price index, RMP, and real wage. We show that higher RMP regions can offer higher nominal wages. Furthermore, we find that an increase in the relative real wage of a region brings about a net increase in workers into the region.

Suggested Citation

  • Keisuke Kondo & Toshihiro Okubo, 2012. "Structural Estimation and Interregional Labour Migration: Evidence from Japan," Keio/Kyoto Joint Global COE Discussion Paper Series 2011-040, Keio/Kyoto Joint Global COE Program.
  • Handle: RePEc:kei:dpaper:2011-040

    Download full text from publisher

    File URL:
    Download Restriction: no

    References listed on IDEAS

    1. Laura Hering & Sandra Poncet, 2006. "Market Access Impact on Individual Wage: Evidence from China," Working Papers 2006-23, CEPII research center.
    2. Pierre-Philippe Combes & Thierry Mayer & Jacques-François Thisse, 2008. "Economic Geography: The Integration of Regions and Nations," Université Paris1 Panthéon-Sorbonne (Post-Print and Working Papers) hal-00311000, HAL.
    3. Brakman, Steven & Garretsen, Harry, 2006. "New economic geography: Closing the gap between theory and empirics," Regional Science and Urban Economics, Elsevier, vol. 36(5), pages 569-572, September.
    4. Mary Amiti & Lisa Cameron, 2007. "Economic Geography and Wages," The Review of Economics and Statistics, MIT Press, vol. 89(1), pages 15-29, February.
    5. Jordi Pons & Elisenda Paluzie & Javier Silvestre & Daniel A. Tirado, 2007. "Testing The New Economic Geography: Migrations And Industrial Agglomerations In Spain," Journal of Regional Science, Wiley Blackwell, vol. 47(2), pages 289-313.
    6. H. Hanson, Gordon, 2005. "Market potential, increasing returns and geographic concentration," Journal of International Economics, Elsevier, vol. 67(1), pages 1-24, September.
    7. Tabuchi, Takatoshi & Thisse, Jacques-Francois, 2002. "Taste heterogeneity, labor mobility and economic geography," Journal of Development Economics, Elsevier, vol. 69(1), pages 155-177, October.
    8. Richard Baldwin & Rikard Forslid & Philippe Martin & Gianmarco Ottaviano & Frederic Robert-Nicoud, 2005. "Economic Geography and Public Policy," Economics Books, Princeton University Press, edition 1, number 7524, June.
    9. Maarten Bosker & Steven Brakman & Harry Garretsen & Marc Schramm, 2010. "Adding geography to the new economic geography: bridging the gap between theory and empirics," Journal of Economic Geography, Oxford University Press, vol. 10(6), pages 793-823, November.
    Full references (including those not matched with items on IDEAS)

    More about this item

    NEP fields

    This paper has been announced in the following NEP Reports:


    Access and download statistics


    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:kei:dpaper:2011-040. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Global COE Program Office). General contact details of provider: .

    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.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with 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.

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

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.