The Geography of Structural Transformation: Effects on Inequality and Mobility

Kohei Takeda

No 8nfx5, OSF Preprints from Center for Open Science

Abstract: Economies transform at an uneven pace. This paper develops a dynamic overlapping generations model of economic geography where historical exposure to different industries creates persistence in occupational structure, and non-homothetic preferences and differential productivity spillovers lead to different rates of structural transformation. The model is calibrated to the U.S. economy from 1980 to 2010. The calibration allows us to back out measures of upward mobility and inequality, thereby providing theoretical underpinnings for the Great Gatsby Curve. The counterfactual analysis reveals that structural transformation has substantial effects on a slowdown and explains heterogeneity in upward mobility across cities.

Date: 2023-11-10
New Economics Papers: this item is included in nep-dge, nep-geo, nep-his, nep-sea, nep-tid and nep-ure
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https://osf.io/download/655573cf2ee3331502c41781/

Related works:
Working Paper: The geography of structural transformation: Effects on inequality and mobility (2022)
Working Paper: The geography of structural transformation: effects on inequality and mobility (2022)
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Persistent link: https://EconPapers.repec.org/RePEc:osf:osfxxx:8nfx5

DOI: 10.31219/osf.io/8nfx5

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