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Title: Place-based Policy, Migration Barriers, and Spatial Inequality

Citation Type: Miscellaneous

Publication Year: 2023

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Abstract: This paper quantifies the effects of place-based incentives and easing migration barriers on spatial inequality in Vietnam. To this end, I develop a dynamic spatial general equilibrium model that captures rich interactions between geography, policies, occupational choices, migration, congestion, and agglomeration effects. Using firm and household data spanning two decades, combined with model-consistent difference-indifferences strategies, I identify key parameters governing policy effects: the firm entry elasticity and the changes in migration costs. I find that place-based tax incentives can diminish spatial inequality when coupled with robust public services. Easing migration barriers to developed areas, while reducing inequality, also decreases welfare in these cities. A strategy that offers tax incentives in underdeveloped regions and lowers migration barriers to developed ones is more promising in reducing spatial inequality than directing both firms and workers to underdeveloped areas.

Url: https://nghiemhuynh.com/papers/Huynh_Nghiem_JMP.pdf

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Authors: Hù, Nghiêm Q

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Data Collections: IPUMS International

Topics: Migration and Immigration, Population Mobility and Spatial Demography, Work, Family, and Time

Countries: Vietnam