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Diversity In Urban Labor Markets And Agglomeration Economies

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  • Sunwoong Kim

Abstract

ABSTRACT A modern economy is characterized by diverse mid specialized urban labor markets. In this paper, agglomeration economics are explained by labor specialization in these markets. With increasing returns to scale and with heterogeneous labor and technology. I show that average productivity increases with the size of the market because of better matches between workers and firms. Thus, the net wage increases as the size of the market increases.

Suggested Citation

  • Sunwoong Kim, 1987. "Diversity In Urban Labor Markets And Agglomeration Economies," Papers in Regional Science, Wiley Blackwell, vol. 62(1), pages 57-70, January.
    • Handle: RePEc:bla:presci:v:62:y:1987:i:1:p:57-70
    DOI: 10.1111/j.1435-5597.1987.tb01053.x
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    Cited by:

    1. Yankow, Jeffrey J., 2006. "Why do cities pay more? An empirical examination of some competing theories of the urban wage premium," Journal of Urban Economics, Elsevier, vol. 60(2), pages 139-161, September.
    2. Alessia Matano & Paolo Naticchioni, 2016. "What Drives The Urban Wage Premium? Evidence Along The Wage Distribution," Journal of Regional Science, Wiley Blackwell, vol. 56(2), pages 191-209, March.
    3. Marianna Belloc & Paolo Naticchioni & Claudia Vittori, 2023. "Urban wage premia, cost of living, and collective bargaining," Journal of Economic Geography, Oxford University Press, vol. 23(1), pages 25-50.
    4. de Oliveira Cruz , Bruno & Naticchioni , Paolo, 2012. "Falling urban wage premium and inequality trends: evidence for Brazil," INVESTIGACIONES REGIONALES - Journal of REGIONAL RESEARCH, Asociación Española de Ciencia Regional, issue 24, pages 91-113.
    5. Brunetti, Irene & Intraligi, Valerio & Ricci, Andrea & Vittori, Claudia, 2023. "Peer interactions, local markets, and wages: Evidence from Italy," GLO Discussion Paper Series 1235, Global Labor Organization (GLO).
    6. Alvarez, J.A. & Díaz, F.Mª & Jiménez, V., 1998. "Mercados regionales de trabajo y desarrollo económico regional en España," Estudios de Economia Aplicada, Estudios de Economia Aplicada, vol. 10, pages 19-38, Diciembre.
    7. Ihara, Ryusuke, 2019. "Heterogeneous labor and agglomeration over generations," Regional Science and Urban Economics, Elsevier, vol. 77(C), pages 367-381.
    8. Sato, Yasuhiro, 2001. "Labor Heterogeneity in an Urban Labor Market," Journal of Urban Economics, Elsevier, vol. 50(2), pages 313-337, September.
    9. Alessia Matano, 2022. "Spatial externalities in big cities and duality of the labour market," Journal of Regional Science, Wiley Blackwell, vol. 62(2), pages 471-498, March.

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