Regional income convergence, skilled migration and productivity response: Explaining relative stagnation in the periphery
Most country growth experiences imply urbanization with labor migration from poor to rich regions and relative stagnation in the periphery. We study mechanisms holding back regional income convergence emphasizing the importance of productivity. Recent research has addressed the effects of labor mobility for income convergence in the neoclassical growth model, but finds that migration has limited effect on the convergence process. We build skilled labor migration into a multi-regional neoclassical growth model and assume that skilled labor affects productivity. The formulation takes advantage of open economy growth models where human capital influences innovation and technology adoption. Skilled labor outmigration from periphery regions reduces the capacity to generate productivity growth. Calibration of the regional growth model shows that skilled outmigration has quantitative importance for the growth performance of the periphery with realistic parameters. The analysis of the consequences of capital shock reproducing backwardness shows how migration equilibrium can be reestablished only after prolonged relative stagnation.
|Date of creation:||27 Jan 2009|
|Date of revision:|
|Contact details of provider:|| Postal: |
Phone: 73 59 19 40
Fax: 73 59 69 54
Web page: http://www.svt.ntnu.no/iso/WP/wp.htm
More information through EDIRC
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Benhabib, Jess & Spiegel, Mark M., 1994. "The role of human capital in economic development evidence from aggregate cross-country data," Journal of Monetary Economics, Elsevier, vol. 34(2), pages 143-173, October.
- Robert E. Lucas, Jr., 2007.
"Trade and the Diffusion of the Industrial Revolution,"
NBER Working Papers
13286, National Bureau of Economic Research, Inc.
- Robert E. Lucas, 2009. "Trade and the Diffusion of the Industrial Revolution," American Economic Journal: Macroeconomics, American Economic Association, vol. 1(1), pages 1-25, January.
- Kiminori Matsuyama, 1991.
"Agricultural Productivity, Comparative Advantage and Economic Growth,"
NBER Working Papers
3606, National Bureau of Economic Research, Inc.
- Matsuyama, Kiminori, 1992. "Agricultural productivity, comparative advantage, and economic growth," Journal of Economic Theory, Elsevier, vol. 58(2), pages 317-334, December.
- Kiminori Matsuyama, 1990. "Agricultural Productivity, Comparative Advantage, and Economic Growth," Discussion Papers 934, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
- Rappaport, Jordan, 2004.
"Why are population flows so persistent?,"
Journal of Urban Economics,
Elsevier, vol. 56(3), pages 554-580, November.
- Aghion, Philippe & Meghir, Costas & Vandenbussche, Jérôme, 2005.
"Growth, Distance to Frontier and Composition of Human Capital,"
CEPR Discussion Papers
4860, C.E.P.R. Discussion Papers.
- Vandenbussche, JÃ©rÃ´me & Aghion, Philippe & Meghir, Costas, 2006. "Growth, distance to frontier and composition of human capital," Scholarly Articles 12490648, Harvard University Department of Economics.
- Jérôme Vandenbussche & Philippe Aghion & Costas Meghir, 2004. "Growth, distance to frontier and composition of human capital," IFS Working Papers W04/31, Institute for Fiscal Studies.
- Francesco Caselli & Wilbur John Coleman II, 2000.
"The World Technology Frontier,"
NBER Working Papers
7904, National Bureau of Economic Research, Inc.
- Costas Aariadis & John Stachurski, 2004.
Department of Economics - Working Papers Series
913, The University of Melbourne.
- Jordan Rappaport, 1999.
"Local Growth Empirics,"
CID Working Papers
23, Center for International Development at Harvard University.
- Jordan M. Rappaport, 2000.
"How Does Labor Mobility Affect Income Convergence?,"
Econometric Society World Congress 2000 Contributed Papers
0124, Econometric Society.
- Rappaport, Jordan, 2005. "How does labor mobility affect income convergence?," Journal of Economic Dynamics and Control, Elsevier, vol. 29(3), pages 567-581, March.
- Jordan Rappaport, 1999. "How does labor mobility affect income convergence?," Research Working Paper 99-12, Federal Reserve Bank of Kansas City.
- Jess Benhabib & Mark M. Spiegel, 2002.
"Human capital and technology diffusion,"
Working Paper Series
2003-02, Federal Reserve Bank of San Francisco.
- Benhabib, Jess & Spiegel, Mark M., 2005. "Human Capital and Technology Diffusion," Handbook of Economic Growth, in: Philippe Aghion & Steven Durlauf (ed.), Handbook of Economic Growth, edition 1, volume 1, chapter 13, pages 935-966 Elsevier.
- Jess Benhabib & Mark M. Spiegel, 2002. "Human capital and technology diffusion," Proceedings, Federal Reserve Bank of San Francisco, issue Nov.
- Masahisa Fujita & Jacques-François Thisse, 2003.
"Does Geographical Agglomeration Foster Economic Growth? And Who Gains and Loses from It?,"
The Japanese Economic Review,
Japanese Economic Association, vol. 54(2), pages 121-145.
- Fujita, Masahisa & Thisse, Jacques-François, 2002. "Does Geographical Agglomeration Foster Economic Growth? And Who Gains and Looses From It?," CEPR Discussion Papers 3135, C.E.P.R. Discussion Papers.
- Paul Evans, 1997. "How Fast Do Economies Converge?," The Review of Economics and Statistics, MIT Press, vol. 79(2), pages 219-225, May.
- Joshua Hojvat Gallin, 2004. "Net Migration and State Labor Market Dynamics," Journal of Labor Economics, University of Chicago Press, vol. 22(1), pages 1-22, January.
- Jérôme Vandenbussche & Philippe Aghion & Costas Meghir, 2006. "Growth, distance to frontier and composition of human capital," Journal of Economic Growth, Springer, vol. 11(2), pages 97-127, June.
- Roback, Jennifer, 1982. "Wages, Rents, and the Quality of Life," Journal of Political Economy, University of Chicago Press, vol. 90(6), pages 1257-78, December.
When requesting a correction, please mention this item's handle: RePEc:nst:samfok:9809. 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: (Marit Balstad Jensen)The email address of this maintainer does not seem to be valid anymore. Please ask Marit Balstad Jensen to update the entry or send us the correct address
If references are entirely missing, you can add them using this form.