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Endogenous qualifications and firms' agglomeration

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  • Picard, Pierre M.
  • Toulemonde, Eric

Abstract

This paper analyzes firms' location when workers endogenously choose to qualify for professional skills but when they remain uncertain about the potential match between their personal abilities and/or affinities and the firms' specific production tasks. By qualifying in a region where firms agglomerate, workers benefit from higher prospects of good match. At the equilibrium, we show that firms may locate in a single cluster, symmetric clusters or even asymmetric clusters. Comparative statics with respect to product market demand and labor supply parameters are provided.

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Bibliographic Info

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

Volume (Year): 55 (2004)
Issue (Month): 3 (May)
Pages: 458-477

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Handle: RePEc:eee:juecon:v:55:y:2004:i:3:p:458-477

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

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Cited by:
  1. OTTAVIANO, Gianmarco & THISSE, Jacques-François, 2003. "Agglomeration and economic geography," CORE Discussion Papers 2003016, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  2. THARAKAN, Joe & TROPEANO, Jean-Philippe, . "On the impact of labor market matching on regional disparities," CORE Discussion Papers RP -2151, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  3. TOULEMONDE, Eric, . "Acquisition of skills, labor subsidies, and agglomeration of firms," CORE Discussion Papers RP -1923, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  4. Pierre M. Picard & David E. Wildasin, 2009. "Labor Market Pooling, Outsourcing and Labor Contracts," CESifo Working Paper Series 2765, CESifo Group Munich.
  5. PICARD, Pierre M. & WILDASIN, David E., 2006. "Labor market pooling, outsourcing and contracts in Chamberlinian regions," CORE Discussion Papers 2006060, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).

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