Arbeitspapier

Regional unemployment and new economic geography

Regional labor markets are characterized by huge disparities. The literature on the wage curve argues that there exists a negative relationship between unemployment and wages. However, this literature cannot explain how disparities of these variables between regions endogenously arise. In contrast, the New Economic Geography analyzes how disparities of regional goods markets endogenously arise, but usually ignores unemployment. Therefore, this paper discusses regional unemployment disparities by introducing efficiency wages into the New Economic Geography. This model shows how disparities of regional goods and labor markets endogenously arise through the interplay of increasing returns to scale, transport costs and migration.

Sprache
Englisch

Erschienen in
Series: HWWI Research Paper ; No. 105

Klassifikation
Wirtschaft
Unemployment: Models, Duration, Incidence, and Job Search
Size and Spatial Distributions of Regional Economic Activity
Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics
Thema
regional unemployment
new economic geography
core-periphery
wage curve
labor migration

Ereignis
Geistige Schöpfung
(wer)
Zierahn, Ulrich
Ereignis
Veröffentlichung
(wer)
Hamburgisches WeltWirtschaftsInstitut (HWWI)
(wo)
Hamburg
(wann)
2011

Handle
Letzte Aktualisierung
12.07.2024, 13:23 MESZ

Objekttyp

  • Arbeitspapier

Beteiligte

  • Zierahn, Ulrich
  • Hamburgisches WeltWirtschaftsInstitut (HWWI)

Entstanden

  • 2011

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