Agglomeration, congestion, and regional unemployment disparities

Arbeitspapier

Regional labor markets are characterized by huge disparities between unemployment rates. Models of the New Economic Geography explain how disparities between 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 between regional goods and labor markets endogenously arise through the interplay of increasing returns to scale, transport costs, congestion costs, and migration. The level and stability of regional labor market disparities depends on the extend of labor market frictions.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: HWWI Research Paper ; No. 108

Classification and Topics

• 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

Contributors, Location and Time

• Event: Geistige Schöpfung
• (who): Zierahn, Ulrich
• Event: Veröffentlichung
• (who): Hamburgisches WeltWirtschaftsInstitut (HWWI)
• (where): Hamburg
• (when): 2011

Further information

• Handle: http://hdl.handle.net/10419/48272
• Last update: 20.09.2024, 8:23 AM CEST