Publication > Part III: Policies for the future > MM3
Policies (such as EPL) that limit job mobility do not fit in this scenario, which already lacks sufficient dynamics. MM cities run the risk of being monopolistic, which should not be aggravated with protectionist devices.
Only in the exceptional case that the entire city shrinks and loses the race against bigger cities (such as London), workers will have to move. In this latter situation, the government will have neither the means (very low tax revenues) nor the scope (limited to national borders) to support workers in migrating.
Metropolitan Markets (Labour market)
Job mobility is the main adjustment device in Metropolitan Markets, which may be supported with social insurance.Policies (such as EPL) that limit job mobility do not fit in this scenario, which already lacks sufficient dynamics. MM cities run the risk of being monopolistic, which should not be aggravated with protectionist devices.
Only in the exceptional case that the entire city shrinks and loses the race against bigger cities (such as London), workers will have to move. In this latter situation, the government will have neither the means (very low tax revenues) nor the scope (limited to national borders) to support workers in migrating.