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| Author: | Abdel-Rahman, H. Wang, P. |
| Title: | Social welfare and income inequality in a system of cities |
| Journal: | Journal of Urban Economics
1997 : MAY, VOL. 41:3, p. 462-483 |
| Index terms: | URBAN AREAS ECONOMICS WELFARE |
| Language: | eng |
| Abstract: | This paper develops a general-equilibrium model of a system of core-periphery cities to examine the main determinants of intra- and inter-regional income disparities. The economy is populated by a continuum of (homogeneous) unskilled and (heterogeneous) skilled workers. Unskilled workers, whose wages are determined competitively, specialize in food production in local cities, skilled workers, whose wages are determined according to a Nash bargain, manufacture a high-tech commodity in the metropolis. |
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