Herbert Dawid on Labor market integration policies and the convergence of regions: the role of skills and technology divffusion

Speaker:  Herbert Dawid - Universitat Bielefeld
  Monday, February 7, 2011 at 12:30 PM Biblioteca DSE, Palazzina 32 ex caserma Passalacqua

We study the role of divfferent labor market integration policies on
economic performance and convergence of two distinct regions in an
agent-based model. Production is characterized by a complementarity
between the quality of the capital stock and the speci c skills of work-
ers using the capital stock. Hence, productivity changes in a region
are influenced both by the investment of local fi rms in high quality
capital goods and by the evolution of the speci c skill distribution of
workers employed in the region. We show that various labor market
integration policies yield via diffvering regional worker flows to distinct
regional distributions of speci c skills. Through this mechanism rela-
tive regional prices are avffected determining the shares that the regions
can capture from overall consumption good demand. There occurs to
be a trade-offv between aggregate output and convergence of regions
with closed labor markets resulting in relatively high convergence but
low output, and more integrated labor markets yielding higher out-
put but lower convergence. Furthermore, results diffver substantially in
several respects as distinct labor market opening policies are applied.

Documents
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Paper  pdfpdf (it, 1548 KB, 01/02/11)

Programme Director
Angelo Zago

Publication date
October 5, 2010

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