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Urban versus Rural Firms: Is there a Spatial Heterogeneity of Labour Demand?
[Firmes urbaines versus firmes rurales : y a t'il une hétérogénéité spatiale de la demande de travail ?]

Author

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  • Jean-Pierre Huiban

    (ALISS - Alimentation et sciences sociales - INRA - Institut National de la Recherche Agronomique)

  • Cécile Détang-Dessendre

    (CESAER - Centre d'Economie et de Sociologie Rurales Appliquées à l'Agriculture et aux Espaces Ruraux - ENESAD - Etablissement National d'Enseignement Supérieur Agronomique de Dijon - INRA - Institut National de la Recherche Agronomique)

  • Francis Aubert

    (CESAER - Centre d'Economie et de Sociologie Rurales Appliquées à l'Agriculture et aux Espaces Ruraux - ENESAD - Etablissement National d'Enseignement Supérieur Agronomique de Dijon - INRA - Institut National de la Recherche Agronomique)

Abstract

This paper analyses the spatial heterogeneity of labour demand. Our main assumption is that for each location there is a combination of factors which is the most efficient, given the endowment of the location in terms of technology access and the relative cost of factors. We estimate our model using a panel of more than 1000 industrial firms over a six-year period. The contribution of skilled labour is emphasised in the firms located in urban areas, unskilled labour in rural firms, and capital in periurban units. The functional distribution of jobs also plays a discriminating role: direct production and similar functions seem to be more concentrated in periurban and rural areas, whereas tertiary functions are clearly assigned to urban units. We then make conclusions as to the existence of different technical paths of growth, with high productivity growth and a dramatic decline of demand for unskilled labour in urban areas, and the maintenance of a labour-intensive method of production in rural areas.

Suggested Citation

  • Jean-Pierre Huiban & Cécile Détang-Dessendre & Francis Aubert, 2004. "Urban versus Rural Firms: Is there a Spatial Heterogeneity of Labour Demand? [Firmes urbaines versus firmes rurales : y a t'il une hétérogénéité spatiale de la demande de travail ?]," Post-Print halshs-01485720, HAL.
    • Handle: RePEc:hal:journl:halshs-01485720
    DOI: 10.1068/a36207
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-01485720
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    References listed on IDEAS

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    1. Paul Krugman & Anthony J. Venables, 1995. "Globalization and the Inequality of Nations," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(4), pages 857-880.
    2. Jean Pierre Huiban, 1993. "The relation between the quality of the labour factor and its productive efficiency [La relation entre la qualité du facteur travail et son efficacité productive]," Post-Print hal-02845476, HAL.
    3. Huriot,Jean-Marie & Thisse,Jacques-François (ed.), 2000. "Economics of Cities," Cambridge Books, Cambridge University Press, number 9780521641906.
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    Cited by:

    1. Gianfranco Piras & Mauricio Sarrias, 2023. "Heterogeneous spatial models in R: spatial regimes models," Journal of Spatial Econometrics, Springer, vol. 4(1), pages 1-32, December.
    2. Ismaëlh Cissé & Jean Dubé & Cédric Brunelle, 2020. "New business location: how local characteristics influence individual location decision?," The Annals of Regional Science, Springer;Western Regional Science Association, vol. 64(1), pages 185-214, February.

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