the result: the lagging regions end up with predominantly unkilled labour as the leading regions attract the skilled furthermore, formal and informal sector jobs co-exist within the urban centres of reading regions. all this tends to prop up the exsiting regional income disparities. but over the long run, people increase their human capital investments to raise their chances of obtaining good-paying jobs in the leading regions. once the number of skilled workers reaches a critical mass nationwide in response to growing demand for skilled manpower, only then will the regional income disparities begin to diminish