A platform for research: civil engineering, architecture and urbanism
Regional subsidies and interregional labor movement
Abstract Japan distributes lump-sum grants and subsidies to the vast majority of local regions. Each region makes a decision regarding expenditure and can choose between non-distortionary direct transfers to the region’s natives and subsidies to stimulate the local economy. Considering a two-region economy with interregional labor migration, we compare the welfare effects of direct transfers and economic stimulation subsidies including those intended to support production, employment, wages, and residents. The results show that under full employment, replacing direct transfers with stimulation subsidies benefits (harms) natives if the recipient region specializes in labor-intensive (labor-saving) activities. However, such replacements can be detrimental to natives if the region suffers unemployment due to wage rigidity. For example, wage and resident subsidies may cause harm as they promote immigration, without stimulating production.
Regional subsidies and interregional labor movement
Abstract Japan distributes lump-sum grants and subsidies to the vast majority of local regions. Each region makes a decision regarding expenditure and can choose between non-distortionary direct transfers to the region’s natives and subsidies to stimulate the local economy. Considering a two-region economy with interregional labor migration, we compare the welfare effects of direct transfers and economic stimulation subsidies including those intended to support production, employment, wages, and residents. The results show that under full employment, replacing direct transfers with stimulation subsidies benefits (harms) natives if the recipient region specializes in labor-intensive (labor-saving) activities. However, such replacements can be detrimental to natives if the region suffers unemployment due to wage rigidity. For example, wage and resident subsidies may cause harm as they promote immigration, without stimulating production.
Regional subsidies and interregional labor movement
Matsuzaki, Daisuke (author) / Ono, Yoshiyasu (author)
2020
Article (Journal)
Electronic Resource
English
BKL:
83.64$jRegionalwirtschaft
/
74.12
Stadtgeographie, Siedlungsgeographie
/
38.00$jGeowissenschaften: Allgemeines
/
38.00
Geowissenschaften: Allgemeines
/
83.64
Regionalwirtschaft
/
74.12$jStadtgeographie$jSiedlungsgeographie
RVK:
ELIB39
/
ELIB18
/
ELIB45
Local classification FBW:
oek 4450
Interregional equilibrium with heterogeneous labor
Online Contents | 1996
|Interregional migration and labor market imbalances
Online Contents | 2004
|Regional cultures attracting interregional migrants
Online Contents | 2014
|Interregional allocation of labor: A measure of economic efficiency
Online Contents | 1970
|Book Reviews - Methods of Interregional and Regional Analysis
Online Contents | 2000
|