- A-Z
- Jena Economic Resea...
- Volume 8
- Labour Market Integ...
- Abgebildete Person
- Erschienen
- 18. August 2014
- Nummer des Discussion-Papers
-
2014-020
- Schlagwort(e)
-
agglomeration
Human capital
labour market integration
migration
- Zusammenfsg.
-
In this paper, we analyse the implications of labour market integration in a two-region model with local human capital externalities and congestion e¤ects. We show that integration can be a double-edged sword. Integration and the ensuing agglomeration of skilled labour can reduce ‘real’ income in both regions. Even if there is a ‘winning’ region, human capital and real income in the two regions together might decline (but need not). However, integration can increase total real income even if it depresses human capital formation. We further explore how the degree of labour mobility and the strength of the congestion e¤ects shape the impact of integration on human capital and income.
- article pub. typess JER
- Research article
- article languages JER
- Englisch
- JEL-Classification for JER
- F22 - International Migration ; R23 - Regional Migration; Regional Labor Markets; Population ; J24 - Human Capital; Skills; Occupational Choice; Labor Productivity ; R12 - Size and Spatial Distributions of Regional Economic Activity