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On the endogeneous formation of secondary employment centers in a city

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  • FUJITA, M.
  • THISSE, J.-F.
  • ZENOU, Y.

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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File URL: http://dx.doi.org/10.1006/juec.1996.2002
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Paper provided by Université catholique de Louvain, Center for Operations Research and Econometrics (CORE) in its series CORE Discussion Papers RP with number -1267.

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Handle: RePEc:cor:louvrp:-1267

Note: In : Journal of Urban Economics, 41, 337-357, 1997
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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. Helsley, Robert W. & Sullivan, Arthur M., 1991. "Urban subcenter formation," Regional Science and Urban Economics, Elsevier, vol. 21(2), pages 255-275, July.
  4. 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.
  5. J.V. Henderson, 1972. "The Sizes and Types of Cities," Working Papers 75, Queen's University, Department of Economics.
  6. Eberts, Randall W., 1981. "An empirical investigation of intraurban wage gradients," Journal of Urban Economics, Elsevier, vol. 10(1), pages 50-60, July.
  7. White, Michelle J., 1976. "Firm suburbanization and urban subcenters," Journal of Urban Economics, Elsevier, vol. 3(4), pages 323-343, October.
  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. 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.
  10. 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.
  11. Madden, Janice Fanning, 1985. "Urban wage gradients: Empirical evidence," Journal of Urban Economics, Elsevier, vol. 18(3), pages 291-301, November.
  12. 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.
  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. Black, Dan A & Hoyt, William H, 1989. "Bidding for Firms," American Economic Review, American Economic Association, vol. 79(5), pages 1249-56, December.
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Cited by:
  1. Eva Gutierrez Puigarnau & Jos N. van Ommeren (VU), 2013. "Do rich households live farther away from their workplaces?," CPB Discussion Paper 244, CPB Netherlands Bureau for Economic Policy Analysis.
  2. 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.
  3. Marcus Berliant & Ping Wang, 2005. "Urban Growth and Subcenter Formation: A Trolley Ride from the Staples Center to Disneyland and the Rose Bowl," Urban/Regional 0511012, EconWPA.
  4. 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.
  5. Yves Zenou & Jacques-François Thisse, 1997. "Segmentation et marchés locaux du travail," Économie et Prévision, Programme National Persée, vol. 131(5), pages 65-76.
  6. 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.
  7. Frederic Gilli, 2003. "Why is Central Paris loosing jobs?," ERSA conference papers ersa03p122, European Regional Science Association.
  8. Song, Yan & Zenou, Yves, 2008. "How Differences in Property Taxes within Cities Affect Urban Sprawl?," Working Paper Series 754, Research Institute of Industrial Economics.
  9. GOBILLON Laurent & SELOD Harris & ZENOU Yves, 2007. "The mechanisms of spatial mismatch," Research Unit Working Papers 0701, Laboratoire d'Economie Appliquee, INRA.
  10. Laurent Gobillon & Harris Selod & Yves Zenou, 2002. "Spatial Mismatch : From the Hypothesis of the Theories," Working Papers 2002-57, Centre de Recherche en Economie et Statistique.
  11. Jacques-François Thisse & Carl Gaigné, 2006. "Mondialisation, concurrence et métropoles," Revue d'Économie Financière, Programme National Persée, vol. 86(5), pages 47-64.
  12. Zhang, Yang & Sasaki, Komei, 1999. "Edge city formation and the resulting vacated business district," ERSA conference papers ersa99pa039, European Regional Science Association.
  13. 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.
  14. 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.
  15. 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.

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