Abstract

The article describes the economic mechanism of analytical modeling of spatial heterogeneity based on economic agglomeration. Special attention is paid to labor market factors, such as effective wages, workers' efforts and labor migration. The migration mobility of labor is generated by the condition of maximizing the utility of the employee, and the effective wage in the centers of agglomerations acts as a kind of proportional measure of this utility. Higher wage rates in agglomerations attract better quality workers from nearby territories and contribute to increasing the efforts of workers in their current workplaces. Thus, effective wages create a synergetic production agglomeration effect in the development of the region.

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