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Interregional equilibrium with heterogeneous labor.

P Michel, A Perrot, Thisse J-f

    Journal of Population Economics
    |February 1, 1996
    PubMed
    Summary
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    Labor migration impacts regional balance, with skilled workers moving to attractive areas. Unskilled workers follow in the long run, leading to typical, often suboptimal, regional imbalances.

    Area of Science:

    • Economics
    • Regional Science
    • Labor Economics

    Background:

    • Labor migration significantly influences regional economic disparities.
    • Worker heterogeneity in productivity and mobility are key factors in migration patterns.
    • Regional amenities and wage differentials drive migration decisions.

    Purpose of the Study:

    • To analyze the impact of heterogeneous labor migration on interregional equilibrium.
    • To model the distinct migration behaviors of skilled and unskilled workers.
    • To investigate the role of externalities and regional amenities in shaping migration outcomes.

    Main Methods:

    • Neoclassical production functions incorporating skilled labor externalities.
    • Modeling of worker utility differentials based on wages and amenities.
    Keywords:
    Demographic FactorsEconomic FactorsEmployment StatusGeographic FactorsIncentivesInequalitiesLabor MigrationMacroeconomic FactorsMigrationOccupational StatusPolicyPopulationPopulation DynamicsResidence CharacteristicsResidential MobilitySocioeconomic FactorsSocioeconomic StatusSpatial DistributionWagesWorld

    Related Experiment Videos

  • Analysis of short-run and long-run labor mobility dynamics.

    • Main Results:

    • Skilled workers exhibit immediate responsiveness to market disequilibrium.
    • Unskilled workers demonstrate short-run immobility, migrating with skilled workers in the long run.
    • Equilibrium patterns are characterized by regional imbalances, often suboptimal, influenced by unskilled mobility and migration incentives.

    Conclusions:

    • Labor migration, driven by productivity and mobility differences, leads to persistent regional imbalances.
    • The interplay of skilled and unskilled worker migration, alongside regional factors, results in suboptimal equilibrium states.
    • Understanding these dynamics is crucial for effective regional economic policy and development.