Arbeitspapier

Agglomeration, congestion, and regional unemployment disparities

Regional labor markets are characterized by huge disparities of unemployment rates. Models of the New Economic Geography explain how disparities of regional goods markets endogenously arise but usually assume full employment. This paper discusses regional unemployment disparities by introducing a wage curve based on efficiency wages into the New Economic Geography. The model shows how disparities of regional goods and labor markets endogenously arise through the interplay of increasing returns to scale, transport costs, congestion costs, and migration. In result, the agglomeration pattern might be catastrophic or smooth depending on congestion costs. The transition between both patterns is smooth.

Language
Englisch

Bibliographic citation
Series: MAGKS Joint Discussion Paper Series in Economics ; No. 06-2011

Classification
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
Subject
regional unemployment
New Economic Geography
core-periphery
wage curve
labor migration
Regionale Arbeitslosigkeit
Regionale Disparität
Regionaler Arbeitsmarkt
Neue ökonomische Geographie
Effizienzlohn
Kern-Peripherie-Beziehung
Lohnkurve
Regionale Arbeitsmobilität
Agglomerationseffekt
Bottleneck
Theorie

Event
Geistige Schöpfung
(who)
Zierahn, Ulrich
Event
Veröffentlichung
(who)
Philipps-University Marburg, Faculty of Business Administration and Economics
(where)
Marburg
(when)
2011

Handle
Last update
20.09.2024, 8:20 AM CEST

Data provider

This object is provided by:
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.

Object type

  • Arbeitspapier

Associated

  • Zierahn, Ulrich
  • Philipps-University Marburg, Faculty of Business Administration and Economics

Time of origin

  • 2011

Other Objects (12)