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Migration and dynamic agglomeration economies: Regional income growth in Norway

  • Jørn Rattsø

    ()

    (Department of Economics, Norwegian University of Science and Technology)

  • Hildegunn E. Stokke

    (Department of Economics, Norwegian University of Science and Technology)

The existence of agglomeration economies is well established. We study dynamic agglomeration effects and expect regional income divergence when people move from the periphery to cities. We use distribution analysis, Kernel density functions and first order Markov chains, to investigate whether data from Norwegian regions 1972-2008 with strong urbanization are consistent with agglomeration effects. The analysis shows overall income convergence, contrary to the hypothesis of agglomeration economies. Regions with large increases in population do not show systematic higher income growth. The probabilities of moving up and down the income distribution are independent of the migration pattern. We conclude that strong dynamic agglomeration effects linked to inmigration are inconsistent with the data.

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File URL: http://www.svt.ntnu.no/iso/WP/2011/2_jrhs_agglo_010211.pdf
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Paper provided by Department of Economics, Norwegian University of Science and Technology in its series Working Paper Series with number 11111.

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Length: 30 pages
Date of creation: 01 Feb 2011
Date of revision:
Handle: RePEc:nst:samfok:11111
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  1. Jørn Rattsø & Hildegunn E. Stokke, 2011. "Accumulation of education and regional income growth: Limited human capital effects in Norway," Working Paper Series 11211, Department of Economics, Norwegian University of Science and Technology.
  2. de la Fuente, Angel, 1996. "On the Sources of Convergence: A Close Look at the Spanish Regions," CEPR Discussion Papers 1543, C.E.P.R. Discussion Papers.
  3. Pierre-Philippe Combes & Gilles Duranton & Diego Puga & Sebastien Roux, 2009. "The productivity advantages of large cities: Distinguishing agglomeration from firm selection," Working Papers tecipa-353, University of Toronto, Department of Economics.
  4. Combes, Pierre-Philippe & Duranton, Gilles & Gobillon, Laurent, 2004. "Spatial Wage Disparities: Sorting Matters!," CEPR Discussion Papers 4240, C.E.P.R. Discussion Papers.
  5. Stein �stbye & Olle Westerlund, 2007. "Is Migration Important for Regional Convergence? Comparative Evidence for Norwegian and Swedish Counties, 1980-2000," Regional Studies, Taylor & Francis Journals, vol. 41(7), pages 901-915.
  6. Joern Rattsoe & Hildegunn Ekroll Stokke, 2009. "Regional income convergence, skilled migration and productivity response: Explaining relative stagnation in the periphery," Working Paper Series 9809, Department of Economics, Norwegian University of Science and Technology.
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