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On the Endogeneous Formation of Secondary Employment Centers in a City

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Author Info

  • 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. Asami, Yasushi & Fujita, Masahisa & Thisse, Jacques-Francois, 1993. "A land capitalization approach to the efficient provision of urban facilities," Regional Science and Urban Economics, Elsevier, vol. 23(4), pages 487-522, September.
  2. 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.
  3. Henderson, J V, 1974. "The Sizes and Types of Cities," American Economic Review, American Economic Association, vol. 64(4), pages 640-56, 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. 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.
  6. Madden, Janice Fanning, 1985. "Urban wage gradients: Empirical evidence," Journal of Urban Economics, Elsevier, vol. 18(3), pages 291-301, November.
  7. Small Kenneth A. & Song Shunfeng, 1994. "Population and Employment Densities: Structure and Change," Journal of Urban Economics, Elsevier, vol. 36(3), pages 292-313, November.
  8. Black, Dan A & Hoyt, William H, 1989. "Bidding for Firms," American Economic Review, American Economic Association, vol. 79(5), pages 1249-56, December.
  9. 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.
  10. 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.
  11. Asami, Y., 1993. "A Land Capitalization Approach To the Efficient Provision of Urban Facilities. Reg. Sci. Urban Econ," Open Access publications from Université catholique de Louvain info:hdl:2078.1/49987, Université catholique de Louvain.
  12. 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.
  13. 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.
  14. Eberts, Randall W., 1981. "An empirical investigation of intraurban wage gradients," Journal of Urban Economics, Elsevier, vol. 10(1), pages 50-60, July.
  15. 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.
  16. White, Michelle J., 1976. "Firm suburbanization and urban subcenters," Journal of Urban Economics, Elsevier, vol. 3(4), pages 323-343, October.
  17. 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.
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Citations

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Cited by:
  1. Gobillon, Laurent & Selod, Harris & Zenou, Yves, 2005. "The mechanisms of spatial mismatch," CEPR Discussion Papers 5346, C.E.P.R. Discussion Papers.
  2. Jacques-François Thisse & Carl Gaigné, 2006. "Mondialisation, concurrence et métropoles," Revue d'Économie Financière, Programme National Persée, vol. 86(5), pages 47-64.
  3. BOITEUX-ORAIN, Céline & HURIOT, Jean-Marie, 2001. "Modéliser la suburbanisation . Succès et limites de la microéconomie urbaine," LATEC - Document de travail - Economie (1991-2003) 2001-02, LATEC, Laboratoire d'Analyse et des Techniques EConomiques, CNRS UMR 5118, Université de Bourgogne.
  4. Daniel P. McMillen, 2003. "Employment subcenters in Chicago: past, present, and future," Economic Perspectives, Federal Reserve Bank of Chicago, issue Q II, pages 2-14.
  5. Gobillon, Laurent & Selod, Harris & Zenou, Yves, 2003. "Spatial Mismatch: From the Hypothesis to the Theories," IZA Discussion Papers 693, Institute for the Study of Labor (IZA).
  6. Ivan Muñiz & Anna Galindo & Miguel Angel García, 2005. "Descentralisation, Integration and polycentrism in Barcelona," Working Papers wpdea0512, Department of Applied Economics at Universitat Autonoma of Barcelona.
  7. Song, Yan & Zenou, Yves, 2008. "How Differences in Property Taxes within Cities Affect Urban Sprawl?," CEPR Discussion Papers 6842, C.E.P.R. Discussion Papers.
  8. Berliant, Marcus & Wang, Ping, 2008. "Urban growth and subcenter formation: A trolley ride from the Staples Center to Disneyland and the Rose Bowl," Journal of Urban Economics, Elsevier, vol. 63(2), pages 679-693, March.
  9. Ivan Muñiz & Anna Galindo & Miguel Ángel García, 2005. "Descentralización, integración y policentrismo en Barcelona," Working Papers wpdea0505, Department of Applied Economics at Universitat Autonoma of Barcelona.
  10. Zhang, Yang & Sasaki, Komei, 1999. "Edge city formation and the resulting vacated business district," ERSA conference papers ersa99pa039, European Regional Science Association.
  11. Yves Zenou & Jacques-François Thisse, 1997. "Segmentation et marchés locaux du travail," Économie et Prévision, Programme National Persée, vol. 131(5), pages 65-76.
  12. Frederic Gilli, 2003. "Why is Central Paris loosing jobs?," ERSA conference papers ersa03p122, European Regional Science Association.
  13. Mark J. Kutzbach, 2010. "Access to Workers or Employers? An Intra-Urban Analysis of Plant Location Decisions," Working Papers 10-21r, Center for Economic Studies, U.S. Census Bureau, revised Sep 2012.
  14. Emili Tortosa-Ausina & Luisa Alamá & Ana M Fuertes-Eugenio & Marta Roig-Casanova, 2011. "Urban spatial structure and economic growth in Spanish metropolitan areas," ERSA conference papers ersa11p1703, European Regional Science Association.

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