Trade, migration and regional unemployment

Paolo Epifani () and Gino Gancia

Economics Working Papers from Department of Economics and Business, Universitat Pompeu Fabra

Abstract: 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 inßow of immigrants from the periphery into the core reduces the unemployment gap in the short-run, but exacerbates unemployment disparities in the long-run.

Keywords: Integration; Agglomeration; Search frictions; Labor mobility; Regional disparities (search for similar items in EconPapers)
JEL-codes: F12 F15 F16 (search for similar items in EconPapers)
Date: 2002-03, Revised 2003-11
New Economics Papers: this item is included in nep-geo, nep-int and nep-lab
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

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Related works:
Working Paper: Trade, Migration and Regional Unemployment (2015)
Journal Article: Trade, migration and regional unemployment (2005)
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Persistent link: https://EconPapers.repec.org/RePEc:upf:upfgen:832

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