Do amenities matter in attracting knowledge workers for regional economic development?

The productivity of knowledge workers (the “H people”) relative to that of unskilled workers (the “L people”) could warrant that a region formulate economic development policies in order to raise this ratio via the in-migration of skilled labour. This article presents a theoretical model which demonstrates the conditions that must be satisfied before an amenity based programme for economic development can succeed. The ratio of H to L turns out to play a crucial role as does the assumption that H’s are L averse. We also examine the possibility that an adverse amenity shock can push a region into an “L trap”.