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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Paper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers with number
2002070.
Find related papers by JEL classification: J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts R3 - Urban, Rural, and Regional Economics - - Production Analysis and Firm Location
Cited by: (explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)
OTTAVIANO, Gianmarco & THISSE, Jacques-Franois, 2003.
"Agglomeration and economic geography,"
CORE Discussion Papers
2003016, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
[Downloadable!]
Other versions:
Ottaviano, Gianmarco & Thisse, Jacques-Francois, 2004.
"Agglomeration and economic geography,"
Handbook of Regional and Urban Economics,
in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 58, pages 2563-2608
Elsevier.
[Downloadable!] (restricted)