21 Pages Posted: 29 Jan 2006
Date Written: February 2002
We develop a model of double matching in the labor market and the social environment in order to explain different migration patterns in response to local economic shocks. This approach explains the different behaviors of workers in different groups, regions, or countries in an endogenous way by showing the existence of multiple equilibria, rather than in an exogenous manner by introducing ex-ante regulations or unemployment benefits. This model can also explain why individuals from some communities form 'sister' communities in some cases and not in others.
Keywords: Migration, multiple equilibria
JEL Classification: J61, E24, R23
Suggested Citation: Suggested Citation
Spilimbergo, Antonio and Ubeda, Luis, A Model of Multiple Equilibria in Geographic Labor Mobility (February 2002). IMF Working Paper, Vol. , pp. 1-21, 2002. Available at SSRN: https://ssrn.com/abstract=879393
By Emek Basker