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Endogenous qualifications and firms' agglomeration

  • Picard, Pierre M.
  • Toulemonde, Eric

This paper analyzes firms' location when workers endogenously choose to qualify for professional skills but when they remain uncertain about the potential match between their personal abilities and/or affinities and the firms' specific production tasks. By qualifying in a region where firms agglomerate, workers benefit from higher prospects of good match. At the equilibrium, we show that firms may locate in a single cluster, symmetric clusters or even asymmetric clusters. Comparative statics with respect to product market demand and labor supply parameters are provided.

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

Volume (Year): 55 (2004)
Issue (Month): 3 (May)
Pages: 458-477

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Handle: RePEc:eee:juecon:v:55:y:2004:i:3:p:458-477
Contact details of provider: Web page: http://www.elsevier.com/locate/inca/622905

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