IDEAS home Printed from https://ideas.repec.org/a/bla/jregsc/v58y2018i1p38-62.html
   My bibliography  Save this article

Market size, occupational self†selection, sorting, and income inequality

Author

Listed:
  • Kristian Behrens
  • Dmitry Pokrovsky
  • Evgeny Zhelobodko

Abstract

We develop a monopolistic competition model with heterogeneous agents who self†select into occupations (entrepreneurs and workers) depending on innate ability. The effect of market size on the equilibrium occupational structure crucially hinges on properties of the lower tier utility function—its scale elasticity and relative love†for†variety. When combined with the underlying ability distribution, the share of entrepreneurs and income inequality can increase or decrease with market size. When extended to allow for the endogenous sorting of mobile agents between cities, numerical examples suggest that sorting may increase inequality within and between cities.

Suggested Citation

  • Kristian Behrens & Dmitry Pokrovsky & Evgeny Zhelobodko, 2018. "Market size, occupational self†selection, sorting, and income inequality," Journal of Regional Science, Wiley Blackwell, vol. 58(1), pages 38-62, January.
    • Handle: RePEc:bla:jregsc:v:58:y:2018:i:1:p:38-62
    DOI: 10.1111/jors.12342
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/jors.12342
    Download Restriction: no
    File URL: https://libkey.io/10.1111/jors.12342?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Zhipeng Gao & Zhenyu Wang & Mi Zhou, 2023. "Is China’s Urbanization Inclusive?—Comparative Research Based on Machine Learning Algorithms," Sustainability, MDPI, vol. 15(4), pages 1-16, February.
    2. Neumann, Uwe & Schaffner, Sandra, 2020. "Neighbourhood-level variation in the risk of private credit default: A driver of urban residential segregation?," Ruhr Economic Papers 875, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    3. Wenyi Qiao & Xianjin Huang, 2021. "Change in Urban Land Use Efficiency in China: Does the High-Speed Rail Make a Difference?," IJERPH, MDPI, vol. 18(19), pages 1-16, September.
    4. Dao‐Zhi Zeng & Shin‐Kun Peng, 2021. "Symmetric tax competition and welfare with footloose capital," Journal of Regional Science, Wiley Blackwell, vol. 61(2), pages 472-491, March.
    5. Neumann, Uwe & Schaffner, Sandra & Eilers, Lea, 2019. "Bedeutung finanzieller Grundkompetenzen aus regionaler Perspektive. Gefördert durch die Dr. Josef und Brigitte Pauli-Stiftung," RWI Projektberichte, RWI - Leibniz-Institut für Wirtschaftsforschung, number 222358.

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:bla:jregsc:v:58:y:2018:i:1:p:38-62. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: http://www.blackwellpublishing.com/journal.asp?ref=0022-4146 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.