Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/104567
Authors: 
Haupt, Alexander
Übelmesser, Silke
Year of Publication: 
2014
Series/Report no.: 
Jena Economic Research Papers 2014-020
Abstract: 
In this paper, we analyse the implications of labour market integration in a two-region model with local human capital externalities and congestion effects. We show that integration can be a double-edged sword. Integration and the ensuing agglomeration of skilled labour can reduce "real" income in both regions. Even if there is a "winning" region, human capital and real income in the two regions together might decline (but need not). However, integration can increase total real income even if it depresses human capital formation. We further explore how the degree of labour mobility and the strength of the congestion effects shape the impact of integration on human capital and income.
Subjects: 
agglomeration
Human capital
labour market integration
migration
JEL: 
F22
R23
J24
R12
Document Type: 
Working Paper

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