Increasing Returns and Spatial Unemployment Disparities

Jens Südekum ()
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Jens Südekum: Universität Konstanz
Authors registered in the RePEc Author Service: Jens Suedekum

No 117, Departmental Discussion Papers from University of Goettingen, Department of Economics

Abstract: Standard models of the new trade and location theories usually assume full employment and are thus ill-equipped to study spatial unemployment differences, which in reality are more pronounced that income disparities. Regional labour market theories like the ´wage curve´-approach on the other hand can not endogenously explain the origin of regional economic disparities. We analyse regional agglomeration and regional unemployment in an unified approach by combining a wage curve with an increasing returns technology. We find that regional unemployment rates closely resemble the coreperiphery structure of regional GDP per capita. This matches the stylised facts from EU-15.

Keywords: Regional Unemployment; Economic Geography; Increasing Returns; Wage Curve; Migration; Labor Mobility (search for similar items in EconPapers)
JEL-codes: F4 J6 R1 (search for similar items in EconPapers)
Date: 2003-04-01
New Economics Papers: this item is included in nep-geo and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (9)

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Related works:
Journal Article: Increasing returns and spatial unemployment disparities (2005)
Working Paper: Increasing Returns and Spatial Unemployment Disparities (2004)
Working Paper: Increasing Returns and Spatial Unemployment Disparities (2004)
Working Paper: Increasing Returns and Spatial Unemployment Disparities (2003)
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Persistent link: https://EconPapers.repec.org/RePEc:got:vwldps:117

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