Income Convergence Within an Economic Union : The Role of Factor Mobility and Coordination.

In the context of a human capital based growth model, we show the essential role of labor mobility in equalizing income levels for countries that start off from different initial income positions. Human capital externalities cum labor mobility are the driving forces behind the income level equalization process. In a non-cooperative equilibrium, labor mobility will be limited and income level equality will not be achieved.

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Year of publication:	1997
Authors:	Razin, A ; Yuen, C-W
Institutions:	Foerder Institute for Economic Research, Eitan Berglas School of Economics
Subject:	LABOUR MOBILITY \| CAPITAL MOVEMENTS \| HUMAN CAPITAL \| EDUCATION \| SUBSIDIES \| INCOME DISTRIBUTION

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Series:	Tel Aviv.
Type of publication:	Book / Working Paper
Notes:	29 pages
Classification:	E21 - Consumption; Saving ; E32 - Business Fluctuations; Cycles ; F33 - International Monetary Arrangements and Institutions ; H30 - Fiscal Policies and Behavior of Economic Agents. General ; O30 - Technological Change; Research and Development. General ; O40 - Economic Growth and Aggregate Productivity. General
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005675410