Interregional equilibrium with heterogeneous labor |
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| Authors: | Michel P Perrot A Thisse J-f |
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| Institution: | (1) GREQAM-LEQAM, Chateau La Farge, Route des Milles, F-13390 Les Milles, France, FR;(2) CEME, Université de Paris I-Sorbonne, 12 Place du Panthéon, F-75243 Paris Cedex 05, France, FR;(3) Université de Paris I-Sorbonne & CERAS-ENPC, 28, rue des Saints-Peres, F-75543 Paris Cedex 07, France, FR |
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| Abstract: | The impact of labor migration on interregional equilibrium is studied when workers are heterogeneous in productivity and regional
mobility. The skilled respond to market disequilibrium by moving into the most attractive region. The unskilled are immobile
in the short-run and move with the skilled in the long-run. Both regions have a neoclassical production function affected
by an externality depending on the number of skilled. Workers move according to the utility differential when regional amenities
vary with population or according to the wage differential. The equilibrium pattern depends on the unskilled‘s mobility and
on migration incentives. Typically, regional imbalance characterizes the equilibrium which is often suboptimal.
Received November 7, 1994 / Accepted April 12, 1995 |
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