A Model of Multiple Equilibria in Geographic Labor Mobility

Spilimbergo, Antonio; Ubeda, Luis

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A Model of Multiple Equilibria in Geographic Labor Mobility

IMF Working Paper No. 02/31

21 Pages Posted: 29 Jan 2006

See all articles by Antonio Spilimbergo

Antonio Spilimbergo

International Monetary Fund (IMF) - Research Department; Centre for Economic Policy Research (CEPR); University of Michigan at Ann Arbor - The William Davidson Institute

Luis Ubeda

Charles III University of Madrid

There are 2 versions of this paper

Date Written: February 2002

Abstract

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 Rives, Luis Antonio, A Model of Multiple Equilibria in Geographic Labor Mobility (February 2002). IMF Working Paper No. 02/31, Available at SSRN: https://ssrn.com/abstract=879393