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On the Endogeneous Formation of Secondary Employment Centers in a City

Author

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  • Fujita, Masahisa
  • Thisse, Jacques-Francois
  • Zenou, Yves

Abstract

A new approach is proposed to explain the formation of secondary employment centers in a monocentric city. Specifically, a large firm considers locating a new plant in a city where none of the existing businesses has a significative share of the labor force, so that its location can be viewed as a secondary employment center. The choice of this location results from the interplay between the process of competition on both the labor and land markets and the technological externalities generated by the proximity of the city center where other firms are located.
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Suggested Citation

  • Fujita, Masahisa & Thisse, Jacques-Francois & Zenou, Yves, 1997. "On the Endogeneous Formation of Secondary Employment Centers in a City," Journal of Urban Economics, Elsevier, vol. 41(3), pages 337-357, May.
  • Handle: RePEc:eee:juecon:v:41:y:1997:i:3:p:337-357
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    References listed on IDEAS

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