Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/222541 
Authors: 
Year of Publication: 
2020
Series/Report no.: 
GLO Discussion Paper No. 623
Publisher: 
Global Labor Organization (GLO), Essen
Abstract: 
This study investigates why the strong form of the spatial equilibrium is weakly supported in the literature. Using a discrete choice model, it shows that the strong form of the spatial equilibrium is rarely observed because workers are imperfectly mobile from the perspective of researchers. Incorporating the discrete choice model, a Markov chain is used to model the spatial dynamics of the population distribution. For a given location choice set, the population distribution is shown to converge to a unique spatial steady state. Microdata from the American Community Survey show that the model assumption is reasonable and support the model predictions.
Subjects: 
imperfect mobility
heterogeneity
spatial steady state
discrete choice model
Markov chain analysis
JEL: 
J61
R10
C25
C15
C44
Document Type: 
Working Paper

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