Migration and regional labor market adjustment: Chile 1977-1982 and 1987-1992

Geoffrey J. D. Hewings and Patricio Aroca ()
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Geoffrey J. D. Hewings: REAL, University of Illinois, South Mathews Av. 607, Urbana 61801-3671, IL, USA

The Annals of Regional Science, 2002, vol. 36, issue 2, pages 197-218

Abstract: The main objective of this paper is to evaluate the migration processes that have been occurring in Chile between 1977-1982 and 1987-1992, as a market mechanism to re-allocate labor among regions. Using traditional consumer theory, a model is developed for a migrant who is evaluating migration. Secondly, this model is estimated, with cross section aggregate data, for both periods using a logit formulation. The results indicate that there is a strong force in the Chilean regional labor market, which serves to concentrate the workforce around the largest populated region of the country. Finally, regional labor markets are simulated to show that migration forces are very weak to arbitrage regional wages and unemployment rate and specific policy is required to promote balanced development across Chilean regions.

JEL-codes: J61 O15 O18 R11 R23 (search for similar items in EconPapers)
Date: 2002-08-02
Note: Received: January 1999/Accepted: August 2001

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