A Model of Multiple Equilibria in Geographic Labor Mobility

February 1, 2002

Preview Citation

Format: Chicago

Luis Ubeda, and Antonio Spilimbergo. A Model of Multiple Equilibria in Geographic Labor Mobility, (USA: International Monetary Fund, 2002) accessed November 21, 2024

Disclaimer: This Working Paper should not be reported as representing the views of the IMF.The views expressed in this Working Paper are those of the author(s) and do not necessarily represent those of the IMF or IMF policy. Working Papers describe research in progress by the author(s) and are published to elicit comments and to further debate

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

Publication Details

Pages:

21
Volume:

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DOI:

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Issue:

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Series:

Working Paper No. 2002/031
Stock No:

WPIEA0312002
ISBN:

9781451845037
ISSN:

1018-5941

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