@article{cf055bf238c04ce1962dc298652677f4,
title = "Income convergence within an economic union: The role of factor mobility and coordination",
abstract = "In the context of a human-capital-based growth model, we show the essential role of labor mobility in equalizing income levels for countries that start off from different initial income positions. Human capital externalities cum labor mobility are the driving forces behind the income level equalization process. In a non-cooperative equilibrium, labor mobility will be limited and income level equality will not be achieved. Coordination will allow free mobility of labor within an economic union, leading to income convergence. Coordination of educational policies will also help internalize the inter-regional human capital externalities to ensure efficient growth for members of the union.",
keywords = "Capital mobility, Cross-country income equality, E21, E32, Education subsidies, F33, H30, Human capital externalities, Labor mobility, O30, O40",
author = "Assaf Razin and Yuen, {Chi Wa}",
note = "Funding Information: This is a revised version of a paper prepared for the conference on Competition and Harmonization? — Fiscal Policy, Regulation, and Standards organized by Oslo University and the CES at the University of Munich in Tutzing, Germany in 1995. A major part of this paper was completed while both authors were visiting the Research Department of the International Monetary Fund. We thank Vesa Kanniainen, Chris Pissarides, Michael Reiter, and two anonymous referees for helpful comments. Special thanks are due to Roger Gordon for his many insightful suggestions and criticisms that led to significant improvement of our paper. This research is supported by the RGC Grant Nos. HKU 496/94H and HKU 396/96H. The usual disclaimer applies. ",
year = "1997",
month = nov,
day = "1",
doi = "10.1016/S0047-2727(97)00040-6",
language = "אנגלית",
volume = "66",
pages = "225--245",
journal = "Journal of Public Economics",
issn = "0047-2727",
publisher = "Elsevier",
number = "2",
}
