The Impact of Labor Markets on Emergence and Persistence of Regional Asymmetries
AbstractThis paper investigates the impact of labor markets and economies of agglomeration on firms location. We show that the existence of a lower bound on wage (e.g. a minimum wage or a reservation wage) introduces asymmetric location of firms. Moreover, changes in that lower bound or in global product demand may induce irreversible changes in location equilibria. Asymmetries in firms location may thus emerge and persist.
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Bibliographic InfoPaper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 248.
Length: 33 pages
Date of creation: Jan 2001
Date of revision:
Publication status: published in: Journal of Urban Economics, 2004, 55 (3), 458-477
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Postal: IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany
Find related papers by JEL classification:
- J23 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Labor Demand
- R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Production Analysis, and Firm Location - - - General
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- vom Berge, Philipp, 2011. "Search Unemployment and New Economic Geography," University of Regensburg Working Papers in Business, Economics and Management Information Systems 454, University of Regensburg, Department of Economics.
- Philipp vom Berge, 2013. "Search unemployment and new economic geography," The Annals of Regional Science, Springer, vol. 50(3), pages 731-751, June.
- Isabelle Méjean & Lise Patureau, 2008.
"Location decisions and Minimum Wages,"
THEMA Working Papers
2008-06, THEMA (THéorie Economique, Modélisation et Applications), Université de Cergy-Pontoise.
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