Paper #832

Título:

Trade, migration and regional unemployment

Autores:

Paolo Epifani y Gino Gancia

Fecha:

Marzo 2002

Resumen:

We formulate a dynamic core-periphery model with frictions in the job matching process to study the interplay between trade costs, migration and regional unemploymentin the short- and long-run. We find that the spatial distribution of unemployment mirrors (inversely) the distribution of economic activities. Further, we highlight a contrast between the short-run and the long-run effects of trade-induced migration on regional unemployment. In particular, an in�ow of immigrants from the periphery into the core reduces the unemployment gap in the short-run, but exacerbates unemployment disparities in the long-run.

Palabras clave:

Integration, Agglomeration, Search frictions, Labor mobility, Regional disparities

Códigos JEL:

F12, F15, F16

Área de investigación:

Macroeconomía y Economía Internacional

Publicado en:

Regional Science and Urban Economics 35, 625-644, 2005

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