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On the impact of labor market matching on regional disparities
Author(s)
Date Issued
2002-11
Date Available
2009-07-27T14:18:32Z
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.
Sponsorship
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
UCD Centre for Economic Research Working Paper Series
WP02/27
Classification
J61
J42
R12
Subject – LCSH
Labor market--Econometric models
Regional economics disparities
Labor mobility
Language
English
Status of Item
Not peer reviewed
This item is made available under a Creative Commons License
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