A Model of Multiple Equilibria in Geographic Labor Mobility

Author/Editor:

Luis Ubeda ; Antonio Spilimbergo

Publication Date:

February 1, 2002

Electronic Access:

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Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

Summary:

We develop a model of double matching in the labor market and the social environment in order to explain different migration patterns in response to local economic shocks. This approach explains the different behaviors of workers in different groups, regions, or countries in an endogenous way by showing the existence of multiple equilibria, rather than in an exogenous manner by introducing ex-ante regulations or unemployment benefits. This model can also explain why individuals from some communities form ‘sister’ communities in some cases and not in others.

Series:

Working Paper No. 2002/031

Subject:

Employment Labor Labor mobility Migration Population and demographics Tax incentives Unemployment Wages

English

Publication Date:

February 1, 2002

ISBN/ISSN:

9781451845037/1018-5941

Stock No:

WPIEA0312002

Pages:

21

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