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http://hdl.handle.net/10419/41070
  
Title:Increasing returns and spatial unemployment disparities PDF Logo
Authors:Suedekum, Jens
Issue Date:2003
Series/Report no.:Diskussionsbeiträge aus dem Volkswirtschaftlichen Seminar der Universität Göttingen 117
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.
Document Type:Working Paper
Appears in Collections:Diskussionsbeiträge aus dem Volkswirtschaftlichen Seminar, Universität Göttingen

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