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On the Endogeneous Formation of Secondary Employment Centers in a City

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

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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Article provided by Elsevier in its journal Journal of Urban Economics.

Volume (Year): 41 (1997)
Issue (Month): 3 (May)
Pages: 337-357

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Handle: RePEc:eee:juecon:v:41:y:1997:i:3:p:337-357
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  1. White, Michelle J., 1988. "Location choice and commuting behavior in cities with decentralized employment," Journal of Urban Economics, Elsevier, vol. 24(2), pages 129-152, September.
  2. White, Michelle J., 1976. "Firm suburbanization and urban subcenters," Journal of Urban Economics, Elsevier, vol. 3(4), pages 323-343, October.
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  12. Fujita, Masahisa & Ogawa, Hideaki, 1982. "Multiple equilibria and structural transition of non-monocentric urban configurations," Regional Science and Urban Economics, Elsevier, vol. 12(2), pages 161-196, May.
  13. Eberts, Randall W., 1981. "An empirical investigation of intraurban wage gradients," Journal of Urban Economics, Elsevier, vol. 10(1), pages 50-60, July.
  14. Asami, Yasushi & Fujita, Masahisa & Thisse, Jacques-Francois, 1993. "A land capitalization approach to the efficient provision of urban facilities," Regional Science and Urban Economics, Elsevier, vol. 23(4), pages 487-522, September.
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