Arbeitspapier

Monocentric cities, endogenous agglomeration, and unemployment disparities

The literature on the wage curve provides considerable evidence in favor of a negative relationship between unemployment and wages. It is thus often seen as a refutation of the Harris-Todaro model, who point to a positive relationship. This paper shows that both strands of literature are special cases of a more general approach by combining a New Economic Geography model with monocentric cities and efficiency wages. Whether the relationship is positive or negative depends on the transportation costs between the cities and commuting costs within them. The model helps explain whether and under which conditions the agglomeration of economic activity is associated with higher unemployment and why controls for agglomeration should be included in wage curve regressions.

Sprache
Englisch

Erschienen in
Series: MAGKS Joint Discussion Paper Series in Economics ; No. 38-2012

Klassifikation
Wirtschaft
Size and Spatial Distributions of Regional Economic Activity
Land Use Patterns
Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics
Thema
New Economic Geography
Urban Economics
Efficiency Wages
Unemployment
Disparities
Regional Migration
Lohnkurve
Stadtstruktur
Agglomerationseffekt
Regionale Arbeitslosigkeit
Regionale Disparität
Effizienzlohn
Binnenwanderung
Theorie

Ereignis
Geistige Schöpfung
(wer)
Zierahn, Ulrich
Ereignis
Veröffentlichung
(wer)
Philipps-University Marburg, Faculty of Business Administration and Economics
(wo)
Marburg
(wann)
2012

Handle
Letzte Aktualisierung
20.09.2024, 08:24 MESZ

Objekttyp

  • Arbeitspapier

Beteiligte

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

Entstanden

  • 2012

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