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Spatial Mismatch and Skill Accumulation

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  • Monfort, Philippe
  • Ottaviano, Gianmarco Ireo Paolo

Abstract

Increasing returns in matching between skilled workers and firms create a local thick-market externality when labour markets are geographically segmented. This generates an agglomeration force that can offset the dispersion force due to local competition in a segmented product market. When this is the case, only some regions specialize in high-skill productions while others are caught in a low-skill trap.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 3324.

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Date of creation: Apr 2002
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Handle: RePEc:cpr:ceprdp:3324

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Keywords: agglomeration; dual labour markets; skill accumulation; spatial mismatch;

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References

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Citations

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Cited by:
  1. Ulrich Zierahn, 2013. "Agglomeration, congestion, and regional unemployment disparities," The Annals of Regional Science, Springer, vol. 51(2), pages 435-457, October.
  2. Paolo Epifani & Gino Gancia, 2004. "Trade, Migration and Regional Unemployment," Working Papers 199, Barcelona Graduate School of Economics.
  3. Zierahn, Ulrich, 2011. "Regional unemployment and new economic geography," HWWI Research Papers 105, Hamburg Institute of International Economics (HWWI).

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