External income, De-industrialisation and Labour Mobility

DEM Discussion Paper Series from Department of Economics at the University of Luxembourg

Abstract: Relaxing the assumption of fixed labour in a general equilibrium model studying the impact of resource income on the allocation of labour across sectors offers insights on how labour mobility may mitigate adverse effects such as de-industrialisation caused by resource income. The theoretical model suggests clear signs of the impact of labour (downward) and the resource income (upward) on the relative size of the service sector. Indirect effects are visible through the interactions of both variables on each other. The model is estimated in a fixed effect panel model, which offers support to the model’s direct and indirect effects.

Keywords: Booming sectors; Migration; de-industrialisation (search for similar items in EconPapers)
JEL-codes: C33 J61 L16 Q33 (search for similar items in EconPapers)
Date: 2011
New Economics Papers: this item is included in nep-lab and nep-mig
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Persistent link: https://EconPapers.repec.org/RePEc:luc:wpaper:11-20

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