Firm Location and Job Creation in Cities
AbstractCities are often viewed as places fostering employment. It is shown that the choice of a particular location within a city is a key factor for the creation of jobs by a new firm. This question is addressed in the context of a standard urban model in which existing firms are established at the city center and where workers compete on both the land and labour markets. The new firm is supposed to anticipate the impact of its location and wage decision on those two markets. Different urban configurations then emerge depending on the competitiveness of the existing firms on the labour market. More jobs are created as the firm sets up further away from the city center.
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Bibliographic InfoPaper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 1011.
Date of creation: Sep 1994
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Find related papers by JEL classification:
- J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
- R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
- R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General
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- Boiscuvier, Éléonore, 2001. "Innovation, intégration et développement régional," L'Actualité Economique, Société Canadienne de Science Economique, vol. 77(2), pages 255-280, juin.
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