On the impact of labor market matching on regional disparities

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Title: On the impact of labor market matching on regional disparities
Authors: Tharakan, Joe
Tropeano, Jean-Philippe
Permanent link: http://hdl.handle.net/10197/1307
Date: Nov-2002
Abstract: We propose a model where imperfect matching between firms and workers on local labor markets leads to spatial agglomeration. We show that the occurrence of spatial agglomeration depends on initial size differences in terms of both number of workers and firms. We analyse the effect of different public policies. In our setting, the effect of a higher level of human capital on regional disparities depends on whether it makes workers more mobile on the labour market or more specialised. Policies that increase workers’ interregional mobility, increase the likelihood that regions diverge. Finally, competition policy is shown to reduce regional disparities.
Funding Details: Fonds de la Recherche Scientifique (FNRS) ; Ministere de l’education, de la recherche et de la formation (Communaute Ministere de l’education, de la recherche et de la formation (Communaute Francaise de Belgique)
Type of material: Working Paper
Publisher: University College Dublin. School of Economics
Series/Report no.: UCD Centre for Economic Research Working Paper Series; WP02/27
Keywords: Local labor marketRegional disparitiesEconomic geographyHuman capital
Subject LCSH: Labor market--Econometric models
Regional economics disparities
Labor mobility
Other versions: http://www.ucd.ie/economics/research/papers/2002/WP02.27.pdf
Language: en
Status of Item: Not peer reviewed
Appears in Collections:Economics Working Papers & Policy Papers

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