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Regional Inequality and Human Capital Quality: The Impact of Technology on the Arrival Rate of Employment Offers

Author

Listed:
  • Stilianos Alexiadis

    (Ministry of Rural Development & Foods, Athens, Greece)

  • Konstantinos Eleftheriou

    (University of Piraeus, Greece)

  • Peter Nijkamp

    (VU University Amsterdam)

Abstract

This paper aims to provide a conceptual and operational context for analysing regional inequalities. It does so by utilizing a ‘search & matching’ framework. The model, developed in this paper, maps the way in which individuals are distributed according to: 1) the abilities of individuals to perform certain, specified, tasks; and 2) the degree of regional specialization. The impacts of advances in information technology are examined explicitly in this model. While the relevant theoretical and empirical literature analyses the impact of technological progress with respect to changes in regional productivity, the present model takes an alternative perspective. This model is focused, explicitly, upon changes in the arrival of job offers and employment opportunities. The way in which individuals decide about employment, as an aftermath of changes in information technology, is constructed using the aforementioned framework. Consequently, this approach provides an account for the distribution of ‘human capital’ (from the perspective that individuals acquire jobs in sectors in which they are more productive) across regions, and, by extension, for the persistence of regional inequalities. Regional inequalities are attributed to possible mismatches, leading individuals to accept job offers from sectors in which they are less productive. Simulation experiments, then, complement the theoretical framework, while some preliminary empirical evidence using a sample of NUTS-2 and NUTS-3 regions in Europe, is also presented.

Suggested Citation

  • Stilianos Alexiadis & Konstantinos Eleftheriou & Peter Nijkamp, 2013. "Regional Inequality and Human Capital Quality: The Impact of Technology on the Arrival Rate of Employment Offers," Tinbergen Institute Discussion Papers 13-166/VIII, Tinbergen Institute, revised 31 Oct 2013.
    • Handle: RePEc:tin:wpaper:20130166
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    References listed on IDEAS

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    1. Pontus Braunerhjelm & Benny Borgman, 2004. "Geographical Concentration, Entrepreneurship and Regional Growth: Evidence from Regional Data in Sweden, 1975-99," Regional Studies, Taylor & Francis Journals, vol. 38(8), pages 929-947.
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    4. Daron Acemoglu, 2002. "Technical Change, Inequality, and the Labor Market," Journal of Economic Literature, American Economic Association, vol. 40(1), pages 7-72, March.
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    More about this item

    Keywords

    Regional inequalities; human capital; technological progress; search & matching;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • R10 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General

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