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On the impact of labor market matching on regional disparities

Joe Tharakan and Jean-Philippe Tropeano ()

No 200227, Working Papers from School of Economics, University College Dublin

Abstract: We propose a model where imperfect matching between firms and workers on local labor markets leads to spatial agglomeration. We show that the occurrence of spatial agglomeration depends on initial size differences in terms of both number of workers and firms. We analyse the effect of different public policies. In our setting, the effect of a higher level of human capital on regional disparities depends on whether it makes workers more mobile on the labour market or more specialised. Policies that increase workers’ interregional mobility, increase the likelihood that regions diverge. Finally, competition policy is shown to reduce regional disparities.

Keywords: Local labor market; Regional disparities; Economic geography; Human capital; Labor market--Econometric models; Regional economics disparities; Labor mobility (search for similar items in EconPapers)
JEL-codes: J61 J42 R12 (search for similar items in EconPapers)
Date: 2002-11
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Downloads: (external link)
http://hdl.handle.net/10197/1307 First version, 2002 (application/pdf)

Related works:
Journal Article: ON THE IMPACT OF LABOR MARKET MATCHING ON REGIONAL DISPARITIES* (2009) Downloads
Working Paper: On the impact of labor market matching on regional disparities (2009) Downloads
Working Paper: On the Impact of Labor Market Matching of Regional Disparities (2009)
Working Paper: On the impact of labor market matching on regional disparities (2008) Downloads
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