Income Convergence Within an Economic Union: The Role of Factor Mobility and Coordination

Assaf Razin and C-W Yuen

Working Papers from Tel Aviv

Abstract: In the context of a human capital based growth model, we show the essential role of labor mobility in equalizing income levels for countries that start off from different initial income positions. Human capital externalities cum labor mobility are the driving forces behind the income level equalization process. In a non-cooperative equilibrium, labor mobility will be limited and income level equality will not be achieved.

Keywords: LABOUR MOBILITY; CAPITAL MOVEMENTS; HUMAN CAPITAL; EDUCATION; SUBSIDIES; INCOME DISTRIBUTION (search for similar items in EconPapers)
JEL-codes: E21 E32 F33 H30 O30 O40 (search for similar items in EconPapers)
Pages: 29 pages
Date: 1997
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Citations: View citations in EconPapers (12)

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Journal Article: Income convergence within an economic union: the role of factor mobility and coordination (1997)
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Persistent link: https://EconPapers.repec.org/RePEc:fth:teavfo:13-97

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