We suggest that people higher up in the income ladder care more for the 'quality of life' rather than for the level of income per se. We introduce such a behaviourial assumption in a model of 'rural-urban'and 'urban-urban' migration. 'Quality of life' depends crucially on the 'social infrastructure' which is provided by the regional governments. We show, how starting from a given distribution of skilled labour across two regions and given state of social infrastructure, one of the region loses all the skilled people and the regions are polarised as 'skilled' and 'unskilled' segments of an economy. The results derived in the model continue to hold in more robust specifications of the framework. They also continue to hold when regions are allowed to choose tax rates to finance 'quality of life'.
Download Info
To our knowledge, this item is not available for
download. To find whether it is available, there are three
options:
1. Check below under "Related research" whether another version of this item is available online.
2. Check on the provider's web page
whether it is in fact available.
3. Perform a search for a similarly titled item that would be
available.
Publisher Info
Paper provided by University of Bonn, Germany in its series Discussion Paper Serie A with number
582.
Length: pages Date of creation: Sep 1998 Date of revision: Handle: RePEc:bon:bonsfa:582
Contact details of provider: Postal: Bonn Graduate School of Economics, University of Bonn, Adenauerallee 24 - 26, 53113 Bonn, Germany Fax: +49 228 73 9221 Web page: http://www.bgse.uni-bonn.de/index.php?id=517
For technical questions regarding this item, or to correct its listing, contact: (Daniel Park).