IDEAS home Printed from https://ideas.repec.org/p/sef/csefwp/105.html
   My bibliography  Save this paper

On the Interaction between Unemployment and Inter-regional Mobility

Author

Abstract

This paper aims at examining the interaction between unemployment and inter-regional mobility in the presence of asymmetric productivity shocks. We present an intertemporal two-regions equilibrium model where unemployed workers can migrate from one region to another. The hiring process is represented by a matching function à la Pissarides. We also analyse the wage setting procedure by introducing Nash bargaining between firms and employees. We compare two extremely different scenarios. The case where there is no mobility with unemployment persistence versus the same economy where perfect mobility is assumed. This paper also studied different types of asymmetries such as changes in "unemployment benefits" and/or the cost of posting vacancies. We show the importance of these changes to explain regional unemployment disparities.Finally, we calibrate the model for Spain and we analyse the relevance of the model in explaining regional disparities and inter-regional labour force mobility

Suggested Citation

  • Raquel Fonseca, 2003. "On the Interaction between Unemployment and Inter-regional Mobility," CSEF Working Papers 105, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
    • Handle: RePEc:sef:csefwp:105
    as

    Download full text from publisher

    File URL: http://www.csef.it/WP/wp105.pdf
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Cahuc, Pierre & Wasmer, Etienne, 2001. "Does Intrafirm Bargaining Matter In The Large Firm'S Matching Model?," Macroeconomic Dynamics, Cambridge University Press, vol. 5(5), pages 742-747, November.
    2. Saint-Paul, Gilles, 1996. "Are the unemployed unemployable?," European Economic Review, Elsevier, vol. 40(7), pages 1501-1519, August.
    3. Pablo Antolín, 1994. "International migration flows: The case of Spain (1960-1988)," Working Papers. Serie EC 1994-01, Instituto Valenciano de Investigaciones Económicas, S.A. (Ivie).
    4. Decressin, Jorg & Fatas, Antonio, 1995. "Regional labor market dynamics in Europe," European Economic Review, Elsevier, vol. 39(9), pages 1627-1655, December.
    5. Henry G. Overman & Diego Puga, 2002. "Unemployment clusters across Europe's regions and countries [‘Regional evolutions’]," Economic Policy, CEPR, CESifo, Sciences Po;CES;MSH, vol. 17(34), pages 115-148.
    6. Juillard, Michel, 1996. "Dynare : a program for the resolution and simulation of dynamic models with forward variables through the use of a relaxation algorithm," CEPREMAP Working Papers (Couverture Orange) 9602, CEPREMAP.
    7. Abowd, John M. & Kramarz, Francis, 2003. "The costs of hiring and separations," Labour Economics, Elsevier, vol. 10(5), pages 499-530, October.
    8. Marimon, Ramon & Zilibotti, Fabrizio, 1998. "'Actual' versus 'virtual' employment in Europe Is Spain different?," European Economic Review, Elsevier, vol. 42(1), pages 123-153, January.
    9. Olympia Bover & Pilar Velilla, 1999. "Migrations in Spain: Historical Background and Current Trends," Working Papers 9909, Banco de España.
    10. Juan J. Dolado & Juan F. Jimeno & Rosa Duce, "undated". "The effects of migration on the relative demand of skilled versus unskilled labour: Evidence from Spain," Working Papers 96-20, FEDEA.
    11. Burda, Michael C. & Profit, Stefan, 1996. "Matching across space: Evidence on mobility in the Czech Republic," Labour Economics, Elsevier, vol. 3(3), pages 255-278, October.
    12. Jimeno, Juan F. & Bentolila, Samuel, 1998. "Regional unemployment persistence (Spain, 1976-1994)," Labour Economics, Elsevier, vol. 5(1), pages 25-51, March.
    13. Olivier Jean Blanchard & Lawrence F. Katz, 1992. "Regional Evolutions," Brookings Papers on Economic Activity, Economic Studies Program, The Brookings Institution, vol. 23(1), pages 1-76.
    14. Carlo Devillanova & Walter García-Fontes, 2004. "Migration across Spanish provinces: evidence from the social security records (1978-1992)," Investigaciones Economicas, Fundación SEPI, vol. 28(3), pages 461-487, September.
    15. Boucekkine, Raouf, 1995. "An alternative methodology for solving nonlinear forward-looking models," Journal of Economic Dynamics and Control, Elsevier, vol. 19(4), pages 711-734, May.
    16. Manon Domingues Dos Santos, 1998. "Intégration économique, migrations et chômage," Revue Économique, Programme National Persée, vol. 49(5), pages 1269-1292.
    17. Francisco J. Gil & Maria Jesus Martin & Angel Serrat, 1994. "Movilidad en el mercado de trabajo en España: un análisis econométrico de duración con riesgos en competencia," Investigaciones Economicas, Fundación SEPI, vol. 18(3), pages 517-537, September.
    18. DaVanzo, Julie, 1978. "Does Unemployment Affect Migration?-Evidence from Micro Data," The Review of Economics and Statistics, MIT Press, vol. 60(4), pages 504-514, November.
    19. Greenwood, Michael J, 1975. "Research on Internal Migration in the United States: A Survey," Journal of Economic Literature, American Economic Association, vol. 13(2), pages 397-433, June.
    20. Marco Manacorda & Barbara Petrongolo, 1998. "Regional Imbalances and Aggregate Performance in a Leading Sector Model of the Labour Market: An analysis of Italian data 1977-1991," CEP Discussion Papers dp0402, Centre for Economic Performance, LSE.
    21. Pissarides, Christopher A & Wadsworth, Jonathan, 1989. "Unemployment and the Inter-regional Mobility of Labour," Economic Journal, Royal Economic Society, vol. 99(397), pages 739-755, September.
    22. Samuel Bentolila, "undated". "Internal migration in Spain," Working Papers 2001-07, FEDEA.
    23. Boeri, Tito & Scarpetta, Stefano, 1996. "Regional mismatch and the transition to a market economy," Labour Economics, Elsevier, vol. 3(3), pages 233-254, October.
    24. Mincer, Jacob, 1978. "Family Migration Decisions," Journal of Political Economy, University of Chicago Press, vol. 86(5), pages 749-773, October.
    25. Jackman, R & Layard, Richard & Pissarides, C, 1989. "On Vacancies," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 51(4), pages 377-394, November.
    26. Antolin, Pablo & Bover, Olympia, 1997. "Regional Migration in Spain: The Effect of Personal Characteristics and of Unemployment, Wage and House Price Differentials Using Pooled Cross-Sections," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 59(2), pages 215-235, May.
    27. Andolfatto, David, 1996. "Business Cycles and Labor-Market Search," American Economic Review, American Economic Association, vol. 86(1), pages 112-132, March.
    28. repec:cup:macdyn:v:5:y:2002:i:05:p:742-747_03 is not listed on IDEAS
    29. Hughes, Gordon & McCormick, Barry, 1981. "Do Council Housing Policies Reduce Migration between Regions?," Economic Journal, Royal Economic Society, vol. 91(364), pages 919-937, December.
    30. Pissarides, Christopher A & McMaster, Ian, 1990. "Regional Migration, Wages and Unemployment: Empirical Evidence and Implications for Policy," Oxford Economic Papers, Oxford University Press, vol. 42(4), pages 812-831, October.
    31. Barbara Petrongolo & Etienne Wasmer, 1999. "Matching et spillovers régionaux en Grande-Bretagne et en France," Post-Print hal-03567777, HAL.
    32. Arthur J. Hosios, 1990. "On The Efficiency of Matching and Related Models of Search and Unemployment," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 57(2), pages 279-298.
    33. Harris, John R & Todaro, Michael P, 1970. "Migration, Unemployment & Development: A Two-Sector Analysis," American Economic Review, American Economic Association, vol. 60(1), pages 126-142, March.
    34. Jackman, Richard & Savouri, Savvas, 1992. "Regional Migration in Britain: An Analysis of Gross Flows Using NHS Central Register Data," Economic Journal, Royal Economic Society, vol. 102(415), pages 1433-1450, November.
    35. Ortega, Javier, 2000. "Pareto-Improving Immigration in an Economy with Equilibrium Unemployment," Economic Journal, Royal Economic Society, vol. 110(460), pages 92-112, January.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lutgen, Vanessa & Van der Linden, Bruno, 2015. "Regional equilibrium unemployment theory at the age of the Internet," Regional Science and Urban Economics, Elsevier, vol. 53(C), pages 50-67.
    2. Pierrard, Olivier, 2008. "Commuters, residents and job competition," Regional Science and Urban Economics, Elsevier, vol. 38(6), pages 565-577, November.
    3. Mulhern, Alan & Watson, John & Ghatak, Subrata, 2005. "Spanish inter-regional migration," Economics Discussion Papers 2005-4, School of Economics, Kingston University London.
    4. Alan Mulhern & John Watson, 2010. "Spanish inter-regional migration: an enigma resolved," Applied Economics Letters, Taylor & Francis Journals, vol. 17(14), pages 1355-1359.
    5. Mulhern, Alan & Watson, John, 2009. "Spanish internal migration: is there anything new to say?," Economics Discussion Papers 2009-1, School of Economics, Kingston University London.
    6. Alan Mulhern & John Watson, 2009. "Spanish Internal Migration: Is there Anything New to Say?," Spatial Economic Analysis, Taylor & Francis Journals, vol. 4(1), pages 103-120.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Enrique Lopez-Bazo & Tomas Del Barrio & Manuel Artis, 2005. "Geographical distribution of unemployment in Spain," Regional Studies, Taylor & Francis Journals, vol. 39(3), pages 305-318.
    2. Birgitta Rabe & Mark P. Taylor, 2012. "Differences in Opportunities? Wage, Employment and House-Price Effects on Migration," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 74(6), pages 831-855, December.
    3. Manon Domingues Dos Dantos, 1999. "Le pouvoir équilibrant de l'émigration," Revue Française d'Économie, Programme National Persée, vol. 14(3), pages 91-128.
    4. Consuelo Gámez Amián & José Ignacio García Pérez, 2002. "Flujos Migratorios entre provincias andaluzas y entre éstas y el resto de España," Economic Working Papers at Centro de Estudios Andaluces E2002/01, Centro de Estudios Andaluces.
    5. Fredrik Carlsen & Kåre Johansen & Knut RØed, 2006. "Wage Formation, Regional Migration and Local Labour Market Tightness," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 68(4), pages 423-444, August.
    6. Hannu Tervo, 2000. "Migration and Labour Market Adjustment: Empirical evidence from Finland 1985-90," International Review of Applied Economics, Taylor & Francis Journals, vol. 14(3), pages 343-360.
    7. Martin Abraham & Katrin Auspurg & Sebastian Bähr & Corinna Frodermann & Stefanie Gundert & Thomas Hinz, 2013. "Unemployment and willingness to accept job offers: results of a factorial survey experiment [Arbeitslosigkeit und Stellenannahmebereitschaft: Erste Ergebnisse eines Faktoriellen Survey Moduls]," Journal for Labour Market Research, Springer;Institute for Employment Research/ Institut für Arbeitsmarkt- und Berufsforschung (IAB), vol. 46(4), pages 283-305, December.
    8. Fredrik Carlsen & Kåre Johansen, 2004. "Subjective Measures of Employment Opportunities and Interregional Migration," LABOUR, CEIS, vol. 18(4), pages 563-589, December.
    9. Langella, Monica & Manning, Alan, 2022. "Residential mobility and unemployment in the UK," Labour Economics, Elsevier, vol. 75(C).
    10. Svenja G�rtner, 2016. "New Macroeconomic Evidence on Internal Migration in Sweden, 1967-2003," Regional Studies, Taylor & Francis Journals, vol. 50(1), pages 137-153, January.
    11. Muellbauer, John & Murphy, Anthony & Cameron, Gavin, 2006. "Housing Market Dynamics and Regional Migration in Britain," CEPR Discussion Papers 5832, C.E.P.R. Discussion Papers.
    12. María Gutiérrez-Portilla & Adolfo Maza & María Hierro, 2018. "Foreigners versus natives in Spain: different migration patterns? Any changes in the aftermath of the crisis?," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 61(1), pages 139-159, July.
    13. Fidrmuc, Jan, 2001. "Migration and adjustment to shocks in transition economies," ZEI Working Papers B 23-2001, University of Bonn, ZEI - Center for European Integration Studies.
    14. McCormick, Barry, 1997. "Regional unemployment and labour mobility in the UK," European Economic Review, Elsevier, vol. 41(3-5), pages 581-589, April.
    15. Andrés Rodríguez-Pose & Tobias D. Ketterer, 2012. "Do Local Amenities Affect The Appeal Of Regions In Europe For Migrants?," Journal of Regional Science, Wiley Blackwell, vol. 52(4), pages 535-561, October.
    16. Inmaculada Garcia-Mainar & Victor Montuenga-Gomez, 2003. "The Spanish Wage Curve: 1994-1996," Regional Studies, Taylor & Francis Journals, vol. 37(9), pages 929-945.
    17. Hubert Jayet, 1996. "L'analyse économique des migrations, une synthèse critique," Revue Économique, Programme National Persée, vol. 47(2), pages 193-226.
    18. Blackaby, David H. & Drinkwater, Stephen, 2004. "Migration and Labour Market Differences: The Case of Wales," IZA Discussion Papers 1275, Institute of Labor Economics (IZA).
    19. Alpay Filiztekin, 2009. "Regional unemployment in Turkey," Papers in Regional Science, Wiley Blackwell, vol. 88(4), pages 863-878, November.
    20. repec:rre:publsh:v:34:y:2004:i:2:p:156-71 is not listed on IDEAS
    21. Brian Cushing & Jacques Poot, 2004. "Crossing boundaries and borders: Regional science advances in migration modelling," Advances in Spatial Science, in: Raymond J. G. M. Florax & David A. Plane (ed.), Fifty Years of Regional Science, pages 317-338, Springer.

    More about this item

    Keywords

    Migration; Unemployment; Nash bargaining;
    All these keywords.

    JEL classification:

    • J51 - Labor and Demographic Economics - - Labor-Management Relations, Trade Unions, and Collective Bargaining - - - Trade Unions: Objectives, Structure, and Effects
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

    NEP fields

    This paper has been announced in the following NEP Reports:

    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:sef:csefwp:105. 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.

    If CitEc recognized a bibliographic 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.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Dr. Maria Carannante (email available below). General contact details of provider: https://edirc.repec.org/data/cssalit.html .

    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.