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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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  1. SMITH, Tony E. & ZENOU, Yves, 1996. "Dual Labor Markets, Urban Unemployment and Multicentric Cities," CORE Discussion Papers 1996018, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
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  16. Abdel-Rahman, Hesham M. & Wang, Ping, 1997. "Social Welfare and Income Inequality in a System of Cities," Journal of Urban Economics, Elsevier, vol. 41(3), pages 462-483, May.
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Citations

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Cited by:
  1. Ulrich Zierahn, 2011. "Agglomeration, Congestion, and Regional Unemployment Disparities," MAGKS Papers on Economics 201106, Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung).
  2. Paolo Epifani & Gino Gancia, 2002. "Trade, migration and regional unemployment," Economics Working Papers 832, Department of Economics and Business, Universitat Pompeu Fabra, revised Nov 2003.
  3. Zierahn, Ulrich, 2011. "Regional unemployment and new economic geography," HWWI Research Papers 105, Hamburg Institute of International Economics (HWWI).

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