area (area B) which results in an outward migration of labour. On the assumption that
both labour and capital are perfectly mobile, spatial disparities should logically start to
disappear as the prosperous area (area B) experiences rising unemployment and falling
wages, while the less prosperous area (area A) finds both employment and wage levels
rising. Given time and perfect mobility, the free market view is that the economies of different
localities will tend to converge,making government intervention unnecessary