A Model of Multiple Equilibria in Geographic Labor Mobility
Volume/Issue:
Volume 2002
Issue 031
Publication date: February 2002
ISBN: 9781451845037
$20.00
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Topics covered in this book
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Business and Economics , Social Science , Labor , Taxation - General , Emigration and Immigration , WP , housing market , Migration , multiple equilibria , migration pattern , employment status , workers move , employed worker , migration habit , migration equilibrium , moving cost , Labor mobility , Employment , Unemployment , Wages , Europe
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.
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