Regional Intergration and Migration: An Economic Geography Model with Hetergenous Labour Force



Fig. 3

From fig. 3 the following relations are evident:
φu break < φ self-selection < φu sustain <φs break < φs sustain
there exist therefore a range of trade costs for which a self-selecting equilibrium is possible (φ
self-selection < φ < φs sustain) and another smaller range for which is the only stable
equilibrium (
φu sustain < φ < φs break).

The critical values considered depend on the parameters of the model. All the threshold
values are increasing in
μ. If the share of manufactures in the economy is large, the

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