Migration and Regional Disparities: the Role of Skill Biased Flows
The persistence of disparities is one of the most striking features of regional development. We argue that movements of labour force, instead of being an always equilibrating mechanism, can also make persistent or even reinforce such inequalities. The most advanced regions are in fact generally more attractive, in terms of opportunities, especially to more qualified workers, who, in turn, are an essential ingredient of regional development and competitiveness because of the human capital they bear. We set up a two-regional framework, with a continuum of different skill- type individuals. Each agent’s utility function depends on the wage she earns through her skills, leaving the process of human capital formation out of this paper. Within this framework, we identify and model two complementary mechanisms for skill biased migration flows to take place. The first one resides in the way wages are set. If, in fact, the most skilled workers are not paid their productivity because of wage compression, they will have an incentive to move towards regions with a more dispersed wage scheme. The second mechanism dwells in the existence of some regional specific immobile assets, which make workers di®erently productive in different regions; this happens to a larger extent for those endowed with highest skills, which will therefore be more likely to overcome the mobility costs. Hence a Kaldor-type cumulative process bearing persistent regional disparities is set up.
References listed on IDEAS
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.:
- 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.
- Barro, Robert T. & Sala-I-Martin, Xavier, 1992. "Regional growth and migration: A Japan-United States comparison," Journal of the Japanese and International Economies, Elsevier, vol. 6(4), pages 312-346, December.
- Paul Krugman, 1990.
"Increasing Returns and Economic Geography,"
NBER Working Papers
3275, National Bureau of Economic Research, Inc.
- Shields, Gail M & Shields, Michael P, 1989. " The Emergence of Migration Theory and a Suggested New Direction," Journal of Economic Surveys, Wiley Blackwell, vol. 3(4), pages 277-304.
- Chiara Bentivogli & Patrizio Pagano, 1999. "Regional Disparities and Labour Mobility: the Euro-11 versus the USA," LABOUR, CEIS, vol. 13(3), pages 737-760, 09.
- Diego Puga, 1996.
"The rise and fall of regional inequalities,"
LSE Research Online Documents on Economics
20643, London School of Economics and Political Science, LSE Library.
- Paul M Romer, 1999.
"Increasing Returns and Long-Run Growth,"
Levine's Working Paper Archive
2232, David K. Levine.
- Wood, Adrian & Ridao-Cano, Cristobal, 1999. "Skill, Trade, and International Inequality," Oxford Economic Papers, Oxford University Press, vol. 51(1), pages 89-119, January.
- Lucas, Robert Jr., 1988. "On the mechanics of economic development," Journal of Monetary Economics, Elsevier, vol. 22(1), pages 3-42, July.
- Commander, Simon & Kangasniemi, Mari & Winters, L. Alan, 2003. "The Brain Drain: Curse or Boon?," IZA Discussion Papers 809, Institute for the Study of Labor (IZA).
- Jonathan Coppel & Jean-Christophe Dumont & Ignazio Visco, 2001. "Trends in Immigration and Economic Consequences," OECD Economics Department Working Papers 284, OECD Publishing.
- Beine, Michel & Docquier, Frédéric & Rapoport, Hillel, 2003.
"Brain Drain and LDCs' Growth: Winners and Losers,"
IZA Discussion Papers
819, Institute for the Study of Labor (IZA).
- Maurel, Francoise & Sedillot, Beatrice, 1999. "A measure of the geographic concentration in french manufacturing industries," Regional Science and Urban Economics, Elsevier, vol. 29(5), pages 575-604, September.
- Angel de la Fuente, 2003.
"Human capital in a global and knowledge-based economy,"
UFAE and IAE Working Papers
576.03, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
- Angel de la Fuente & Antonio Ciccone, 2003. "Human capital in a global and knowledge-based economy," Working Papers 70, Barcelona Graduate School of Economics.
- Angel de la Fuente & Antonio Ciccone, 2003. "Human capital in a global and knowledge-based economy," UFAE and IAE Working Papers 562.03, Unitat de Fonaments de l'Anàlisi Econòmica (UAB) and Institut d'Anàlisi Econòmica (CSIC).
- Philippe Martin, 1998. "Can Regional Policies Affect Growth and Geography in Europe?," The World Economy, Wiley Blackwell, vol. 21(6), pages 757-774, 08.
- Rikard Forslid & Gianmarco I.P. Ottaviano, 2003. "An analytically solvable core-periphery model," Journal of Economic Geography, Oxford University Press, vol. 3(3), pages 229-240, July.
- Donald R. Davis & David E. Weinstein, 2002. "Technological Superiority and the Losses from Migration," NBER Working Papers 8971, National Bureau of Economic Research, Inc.
- Jari Ritsila & Marko Ovaskainen, 2001. "Migration and regional centralization of human capital," Applied Economics, Taylor & Francis Journals, vol. 33(3), pages 317-325.
When requesting a correction, please mention this item's handle: RePEc:wpa:wuwpur:0407004. 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: (EconWPA)
If references are entirely missing, you can add them using this form.