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External income, De-industrialisation and Labour Mobility

  • Wessel N. Vermeulen

    ()

    (CREA, University of Luxembourg)

Relaxing the assumption of fixed labour in a general equilibrium model studying the impact of resource income on the allocation of labour across sectors offers insights on how labour mobility may mitigate adverse effects such as de-industrialisation caused by resource income. The theoretical model suggests clear signs of the impact of labour (downward) and the resource income (upward) on the relative size of the service sector. Indirect effects are visible through the interactions of both variables on each other. The model is estimated in a fixed effect panel model, which offers support to the model’s direct and indirect effects.

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File URL: http://wwwfr.uni.lu/content/download/46566/535279/file/2011-20%20-%20External%20income,%20de-industrialisation%20and%20labour%20mobility.pdf
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Paper provided by Center for Research in Economic Analysis, University of Luxembourg in its series CREA Discussion Paper Series with number 11-20.

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Date of creation: 2011
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Handle: RePEc:luc:wpaper:11-20
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