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On the Endogeneous Formation of Secondary Employment Centers in a City

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  • Fujita, Masahisa
  • Thisse, Jacques-Francois
  • Zenou, Yves

Abstract

A new approach is proposed to explain the formation of secondary employment centers in a monocentric city. Specifically, a large firm considers locating a new plant in a city where none of the existing businesses has a significative share of the labor force, so that its location can be viewed as a secondary employment center. The choice of this location results from the interplay between the process of competition on both the labor and land markets and the technological externalities generated by the proximity of the city center where other firms are located.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Urban Economics.

Volume (Year): 41 (1997)
Issue (Month): 3 (May)
Pages: 337-357

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Handle: RePEc:eee:juecon:v:41:y:1997:i:3:p:337-357

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Web page: http://www.elsevier.com/locate/inca/622905

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References

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  1. Small, Kenneth A. & Song, Shunfeng, 1994. "Population and Employment Densities: Structure and Change," University of California Transportation Center, Working Papers qt6nk5v6b4, University of California Transportation Center.
  2. Zenou, Yves & Smith, Tony E., 1995. "Efficiency wages, involuntary unemployment and urban spatial structure," Regional Science and Urban Economics, Elsevier, vol. 25(4), pages 547-573, August.
  3. McMillen, Daniel P. & Singell, Larry Jr., 1992. "Work location, residence location, and the intraurban wage gradient," Journal of Urban Economics, Elsevier, vol. 32(2), pages 195-213, September.
  4. Helsley, Robert W. & Sullivan, Arthur M., 1991. "Urban subcenter formation," Regional Science and Urban Economics, Elsevier, vol. 21(2), pages 255-275, July.
  5. Yinger, John, 1992. "City and suburb: Urban models with more than one employment center," Journal of Urban Economics, Elsevier, vol. 31(2), pages 181-205, March.
  6. Henderson, J V, 1974. "The Sizes and Types of Cities," American Economic Review, American Economic Association, vol. 64(4), pages 640-56, September.
  7. Wieand, Kenneth F., 1987. "An extension of the monocentric urban spatial equilibrium model to a multicenter setting: The case of the two-center city," Journal of Urban Economics, Elsevier, vol. 21(3), pages 259-271, May.
  8. Fujita, Masahisa & Ogawa, Hideaki, 1982. "Multiple equilibria and structural transition of non-monocentric urban configurations," Regional Science and Urban Economics, Elsevier, vol. 12(2), pages 161-196, May.
  9. Black, Dan A & Hoyt, William H, 1989. "Bidding for Firms," American Economic Review, American Economic Association, vol. 79(5), pages 1249-56, December.
  10. White, Michelle J., 1976. "Firm suburbanization and urban subcenters," Journal of Urban Economics, Elsevier, vol. 3(4), pages 323-343, October.
  11. Stahl, Konrad, 1987. "Therories of urban business location," Handbook of Regional and Urban Economics, in: E. S. Mills (ed.), Handbook of Regional and Urban Economics, edition 1, volume 2, chapter 19, pages 759-820 Elsevier.
  12. Kim, Sunwoong, 1991. "Heterogeneity of labor markets and city size in an open spatial economy," Regional Science and Urban Economics, Elsevier, vol. 21(1), pages 109-126, May.
  13. Eberts, Randall W., 1981. "An empirical investigation of intraurban wage gradients," Journal of Urban Economics, Elsevier, vol. 10(1), pages 50-60, July.
  14. Madden, Janice Fanning, 1985. "Urban wage gradients: Empirical evidence," Journal of Urban Economics, Elsevier, vol. 18(3), pages 291-301, November.
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