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
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
new economic geography
core-periphery
wage curve
labor migration
- Handle
- Letzte Aktualisierung
-
12.07.2024, 13:23 MESZ
Objekttyp
- Arbeitspapier
Beteiligte
- Zierahn, Ulrich
- Hamburgisches WeltWirtschaftsInstitut (HWWI)
Entstanden
- 2011