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Regensburger DISKUSSIONSBEITRÄGE zur Wirtschaftswissenschaft University of Regensburg Working Papers in Business , Economics and Management Information Systems AGGLOMERATION AND REGIONAL UNEMPLOYMENT DIFFERENTIALS
| Content Provider | Semantic Scholar |
|---|---|
| Author | Berge, Philipp Vom |
| Copyright Year | 2011 |
| Abstract | This paper develops a solvable general equilibrium agglomeration model, where search frictions for low-skilled immobile workers generate regional unemployment differentials. Contrary to other work in this field, the model yields a higher long-run unemployment rate in the core region. This is because low-skilled manufacturing jobs are more valuable there and unemployment works as a compensating differential. It therefore more closely resembles the classical result of Harris and Todaro (1970). One main difference is that here regions are ex ante equal. I derive expressions for the break and sustain point and analyze the effect of search frictions on their location. JEL-Classification: F12, J61, J64, R12 |
| File Format | PDF HTM / HTML |
| Alternate Webpage(s) | https://epub.uni-regensburg.de/21422/4/Diskussionsbeitraege_Nr._461_Nov_2011.pdf |
| Language | English |
| Access Restriction | Open |
| Content Type | Text |
| Resource Type | Article |
