Trade, Migration and Regional Unemployment

Download or read book Trade, Migration and Regional Unemployment written by Gino Gancia and published by . This book was released on 2005 with total page 0 pages. Available in PDF, EPUB and Kindle. Book excerpt: We formulate a dynamic core-periphery model with frictions in the job matching process to study the interplay between trade costs, migration and regional unemployment in the short- and long-run. We find that the spatial distribution of unemployment mirrors (inversely) the distribution of economic activities. Further, we highlight a contrast between the short-run and the long-run effects of trade-induced migration on regional unemployment. In particular, an inßow of immigrants from the periphery into the core reduces the unemployment gap in the short-run, but exacerbates unemployment disparities in the long-run.