Local Ties in Spatial Equilibrium

Mike Zabek

No rpq5z, SocArXiv from Center for Open Science

Abstract: Someone who lives in an economically depressed place was probably born there. And having workers with local ties – who prefer to live in their birthplaces – leads to smaller migration responses in depressed places. Smaller migration responses lead to lower real incomes and make incomes more volatile, a form of hysteresis. Local ties can also persist for generations. Additionally, subsidies to economically depressed places cause smaller distortions, since few people want to move to depressed places. Finally, subsidies to productive places increase aggregate productivity, since they induce more migration.

Date: 2018-08-02
New Economics Papers: this item is included in nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (2)

Downloads: (external link)
https://osf.io/download/5a8db4dd91b689000d9da7c8/

Related works:
Journal Article: Local Ties in Spatial Equilibrium (2024)
Working Paper: Local Ties in Spatial Equilibrium (2019)
Working Paper: Local Ties in Spatial Equilibrium (2018)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:osf:socarx:rpq5z

DOI: 10.31219/osf.io/rpq5z

Access Statistics for this paper

More papers in SocArXiv from Center for Open Science
Bibliographic data for series maintained by OSF ().