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.

Title Format  (Language, Size, Publication date)
Paper  pdfpdf (it, 1548 KB, 01/02/11)

Programme Director
Angelo Zago

Publication date
October 5, 2010