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Increasing Returns and Spatial Unemployment Disparities AgEcon
Suedekum, Jens.
Regional unemployment rates in the European Union (EU-15) reveal a core-periphery structure. Large "core" regions in the middle of the continent have low unemployment rates, whereas excessive mass unemployment is predominantly found in the peripheral regions at the outside borders of EU-15. This geographical pattern of unemployment rates follows the pattern of GDP per capita. That is, the regions with low (high) unemployment rates on average have comparatively high (low) real income levels. In this paper we try to understand this stylised fact with the help of a theoretical model that builds on two strings in the literature: the recent trade and location theories (like the ´new economic geography´) and the ´wage curve´. Standard models of the new location...
Tipo: Working or Discussion Paper Palavras-chave: Regional Unemployment; Economic Geography; Increasing Returns; Wage Curve; Migration; Labor Mobility; Labor and Human Capital; R1; F4; J6.
Ano: 2004 URL: http://purl.umn.edu/26358
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