A Model of Multiple Equilibria in Geographic Labor Mobility
February 1, 2002
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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.
Subject: Employment, Labor, Labor mobility, Migration, Population and demographics, Tax incentives, Unemployment, Wages
Keywords: employed worker, Employment, employment status, Europe, housing market, Labor mobility, Migration, migration equilibrium, migration habit, migration pattern, moving cost, multiple equilibria, Unemployment, Wages, workers move, WP
Pages:
21
Volume:
2002
DOI:
Issue:
031
Series:
Working Paper No. 2002/031
Stock No:
WPIEA0312002
ISBN:
9781451845037
ISSN:
1018-5941
