A by now large literature in regional economics has greatly improved our understanding of the determinants of the observed spatial disparities in productivity. However, this literature neglects what seems to be a robust and persistent fact accompanying regional productivity differences: high productivity regions also have lower unemployment than low productivity regions. In this paper, we set out a model in the New Economic Geography (NEG)/job search tradition to explore the theoretical determinants of this fact. We find that the same forces producing regional agglomeration and productivity differences also generate persistent unemployment disparities. Moreover, we highlight a contrast between the short-run and long-run effects of migration on regional unemployment. In particular, migration from the periphery to the core may reduce unemployment disparities in the short-run, but exacerbates them in the long-run.

Epifani, P., Gancia, G. (2005). Trade, Migration and Regional Unemployment. REGIONAL SCIENCE AND URBAN ECONOMICS, 35(6), 625-644 [10.1016/j.regsciurbeco.2004.09.003].

Trade, Migration and Regional Unemployment

Gancia G
2005

Abstract

A by now large literature in regional economics has greatly improved our understanding of the determinants of the observed spatial disparities in productivity. However, this literature neglects what seems to be a robust and persistent fact accompanying regional productivity differences: high productivity regions also have lower unemployment than low productivity regions. In this paper, we set out a model in the New Economic Geography (NEG)/job search tradition to explore the theoretical determinants of this fact. We find that the same forces producing regional agglomeration and productivity differences also generate persistent unemployment disparities. Moreover, we highlight a contrast between the short-run and long-run effects of migration on regional unemployment. In particular, migration from the periphery to the core may reduce unemployment disparities in the short-run, but exacerbates them in the long-run.
Articolo in rivista - Articolo scientifico
Agglomeration; Labor mobility; Regional disparities; Search frictions; Transport costs
English
625
644
20
Epifani, P., Gancia, G. (2005). Trade, Migration and Regional Unemployment. REGIONAL SCIENCE AND URBAN ECONOMICS, 35(6), 625-644 [10.1016/j.regsciurbeco.2004.09.003].
Epifani, P; Gancia, G
File in questo prodotto:
File Dimensione Formato  
Epifani-2005-Regional Sci Urban Econ-VoR.pdf

Solo gestori archivio

Descrizione: Research Article
Tipologia di allegato: Publisher’s Version (Version of Record, VoR)
Dimensione 281.22 kB
Formato Adobe PDF
281.22 kB Adobe PDF   Visualizza/Apri   Richiedi una copia

I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.

Utilizza questo identificativo per citare o creare un link a questo documento: https://hdl.handle.net/10281/396547
Citazioni
  • Scopus 40
  • ???jsp.display-item.citation.isi??? 37
Social impact