Agglomeration and Regional Unemployment Disparities [electronic resource] /
Südekum, Jens.
[S.l.] : Peter Lang International Academic Publishing Group, 2018.
3631517459, 9783631517451
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[S.l.] : Peter Lang International Academic Publishing Group, 2018.
Licensed for access by U. of T. users.
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Table of Contents
Forewordsp. 5
Table of contentsp. 9
List of tables, figures and mapsp. 13
Introductionp. 15
Spatial economic disparities within the European Union: The evidencep. 19
Preface: Level of spatial disaggregation and the choice of territorial unitsp. 19
Gross domestic product (GDP)p. 20
GDP of European NUTS II-regions, 1999p. 20
Regional convergence versus divergence in Europep. 21
Regional unemployment in Europep. 26
Unemployment rates in NUTS2-regions, 2000p. 28
Convergence versus divergence of regional unemployment ratesp. 31
Other regional indicatorsp. 32
Employment Growthp. 32
Population Density, Population Changes and Migrationp. 34
Educationp. 39
Innovation and research activitiesp. 39
A closer look at the West German Landerp. 42
Summing up the evidencep. 45
Macroeconomic theories of unemployment and the "European labour market model"p. 47
Introductionp. 47
A brief historical overview about macroeconomicsp. 47
The 'classics'p. 47
Keynes and the neoclassical synthesisp. 48
Friedman and the 'natural rate of unemployment'p. 49
'New classical macroeconomics' and rational expectationsp. 50
The Keynesian responsep. 52
The "European labour market model (ELMM)"p. 54
Why is there insider power in the labour marketp. 55
The aggregate wage setting curvep. 58
The aggregate price setting curvep. 60
Equilibrium in the ELMMp. 63
Some further issues of the ELMMp. 67
The wage curvep. 71
Introductionp. 71
The wage curve as an empirical regularityp. 72
Wage curve theory: The Blanchflower/Oswald-modelp. 75
The partial equilibrium foundation of the wage curvep. 75
General equilibrium in the Blanchflower/Oswald-modelp. 79
Critique of the Blanchflower/Oswald-modelp. 82
The model of Blien (2001)p. 83
Partial labour market equilibrium in the Blien-modelp. 83
The product market and general equilibrium in the Blien-modelp. 84
Critique of the Blien-modelp. 86
Conclusion on wage curve theory and motivation for an own approachp. 88
Regional agglomeration theory and 'new economic geography'p. 91
Introductionp. 91
Scale economies, externalities, and market competitionp. 93
The Marshallian agglomeration economiesp. 95
Centrifugal forces and other location factorsp. 98
The core-periphery model of 'new economic geography'p. 100
Consumer behaviourp. 101
Productionp. 103
Equilibrium conditionsp. 104
Sustainabilityp. 107
Stabilityp. 109
'New economic geography' and the new trade theoryp. 112
Other 'new economic geography'-modelsp. 113
Venables (1996) and Krugman/Venables (1995)p. 113
Housing scarcity: Helpman (1998)p. 117
Analytically tractable modelsp. 120
More sectors, more regionsp. 120
Dynamic modelsp. 121
Empirics, politics, and other unsettled issuesp. 121
Regional costs-of-living: An extension of the Krugman-modelp. 122
Regional costs-of-living: the evidencep. 124
The basic structure of the extended modelp. 126
Sustainability and stabilityp. 128
Conclusion of our approachp. 136
Appendixp. 138
Regional agglomeration and regional unemploymentp. 139
Introductionp. 139
The existing literaturep. 139
The model of Matusz (1996)p. 139
The model of Peeters/Garretsen (2000)p. 140
Regional agglomeration and the wage curve: The modelp. 142
The closed-economy settingp. 142
The two-region case with imperfect tradep. 148
The impact of labour mobilityp. 155
Critical discussion of our model approachp. 159
Discussion of the model from a theoretical point of viewp. 159
Discussion of the model from an empirical point of viewp. 164
Further issuesp. 169
Internal migration and regional disparitiesp. 171
Introductionp. 171
The causes of internal migrationp. 172
The consequences of internal migration: The neoclassical viewp. 173
Internal migration and regional divergence: alternative viewsp. 175
Increasing returns to scalep. 176
Selective labour migrationp. 179
Selective migration in a two-region modelp. 183
The full-employment casep. 183
Union wage setting and unskilled unemploymentp. 186
Conclusion of the model with constant returns to scalep. 190
Agglomeration, worker heterogeneity and national union wage settingp. 191
The full employment casep. 193
The case with unemploymentp. 205
Discussion of the theoretical models and their empirical relevancep. 207
Discussion from a theoretical point of viewp. 207
Discussion from an empirical point of viewp. 208
Concluding remarksp. 211
List of referencesp. 215
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