Modelling Migration and Regional Labour Markets: an Application of the New Economic Geography Model RHOMOLO
| Autor: | d'Artis Kancs, Andries Brandsma, Damiaan Persyn |
|---|---|
| Rok vydání: | 2014 |
| Předmět: |
Labour economics
General equilibrium theory media_common.quotation_subject Wage Market access jel:C68 jel:J61 jel:J20 jel:J64 jel:F22 Carry (investment) Order (exchange) Dynamic spatial general equilibrium model labour migration unemployment wage RHOMOLO DSGE new economic geography ddc:330 Economics D58 media_common O15 System dynamics jel:D58 Labour Migration Unemployment New Economic Geography Dynamic Spatial General Equilibrium Model Labour supply C68 J61 F22 jel:O15 J20 J64 General Economics Econometrics and Finance |
| Zdroj: | Journal of Economic Integration. 29:372-407 |
| Popis: | The present paper describes the modelling approach of regional labour markets taken in the newly developed dynamic spatial general equilibrium model RHOMOLO, where the labour market equilibrium is determined by firms’ labour demand, a wage-curve with unemployment, and inter-regional labour migration. The RHOMOLO model is parameterised by estimating the key structural parameters econometrically. In order to illustrate the potential of the proposed dynamic spatial general equilibrium approach to inter-regionally integrated labour markets, we carry out simulations showing the effects of a reduction in transportation cost, and assess the impact on regional labour markets. Our results confirm that wages and unemployment are by far the most important channels of adjustment to macro-economic and policy shocks in the EU. In contrast, labour migration plays a secondary role in labour market adjustments in the EU. Our results also suggest that the relationship between market access, labour demand and labour supply is non-linear and spatially inter-dependent, which underlines the importance of the proposed dynamic spatial general equilibrium approach. JRC.J.2-Knowledge for Growth |
| Databáze: | OpenAIRE |
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