Regional Labor Market Dynamics, Housing, and Migration

Abstract.  This study explores the impact of plant‐level labor market dynamics and housing markets on gross migration flows. The internal and the external reorganizations of regional labor markets are shown to be related. An increase in internal turnover of jobs and workers in regional labor markets is found to increase net‐migration. This effect arises mainly from a reduction in out‐migration. Housing markets constitute constraints for migration. In particular, an increase in regional housing prices and a large share of owner‐occupancy housing discourages net‐migration to a region by reducing in‐migration. In contrast, the out‐migration rate remains largely unaffected by housing markets.     

Labor Specialization, Transport Costs, and City Size

This paper proposes a simple model of pre-industrial urbanization. Agglomeration stems from increasing returns generated by the specialization of labor, whereas dispersion is provoked by the transport costs of the agricultural good. Considering the existence of some urban institutions (in particular guilds), the equilibrium size of cities is derived and it is efficient. Within this framework, the effects of urban domination (e.g., taxation of agriculture) and the emergence of primate cities are explored. Finally, the transition between early and modern urbanization is studied.     

NAFTA's Labor Side Agreement and International Labor Solidarity

The North American Free Trade Agreement (NAFTA) and its supplemental labor pact, the North American Agreement on Labor Cooperation (NAALC) reflect the uneven advances of labor rights advocacy in connection with international trade. NAFTA provides extensive rights and protections for multinational firms and investors in such areas as intellectual property rights and investment guarantees. The NAALC only partially addresses labor rights and labor conditions, but within its limits it has shown itself to be a viable tool for cross-border solidarity among key actors in the trade union, human rights, and allied movements. The NAALC's principles and complaint mechanisms create new space for advocates to build coalitions and take concrete action to articulate challenges to the status quo and advance workers' interests. Cooperation, consultation, and collaboration among social actors have brought a qualitative change to transnational labor rights networks in North America.     

Interregional Wage Disparities, Relocation Costs, and Labor Mobility in Canada

This paper evaluates possible reasons why interregional wage differences might persist over long periods of time, such as a century or more. A general equilibrium model of interacting regions is developed which can consider explanations including interregional differences in production costs, changes in relocation (migration) costs, and differences in interregional transfer payments. Implications from the model are tested using panel microdata from the Canadian Labour Market Activity Surveys of 1989 and 1990. Key findings are that younger, better educated, native English-speaking workers, who presumably have better information and lower mobility costs, appear to have the smallest interregional wage differences. Thus, because the extent of spatial wage dispersion varies across workers with different characteristics, changes in the pattern of spatial wage disparities over time may be in part a demographic phenomenon.