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Agglomeration of low-productive entrepreneurs to large regions: a simple model

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  • Rikard Forslid
  • Toshihiro Okubo

Abstract

This paper develops a simple model of spatial sorting where the least productive entrepreneurs are drawn to the large core region. This is an unusual feature. The literature on spatial sorting typically shows how the most productive individuals and firms agglomerate to the core. However, our model is consistent with empirical evidence that reveals that large agglomerations also attract the low skilled.

Suggested Citation

  • Rikard Forslid & Toshihiro Okubo, 2021. "Agglomeration of low-productive entrepreneurs to large regions: a simple model," Spatial Economic Analysis, Taylor & Francis Journals, vol. 16(4), pages 471-486, October.
    • Handle: RePEc:taf:specan:v:16:y:2021:i:4:p:471-486
    DOI: 10.1080/17421772.2021.1884280
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    Cited by:

    1. Yunsheng Zhang & Shuting Wang & Ruomeng Zhou, 2025. "Spatial sorting and selection within urban agglomerations: a tripartite evolutionary game model approach," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 12(1), pages 1-12, December.
    2. Yiming Zhou, 2025. "Industrial agglomeration, firm heterogeneity, and environmental pollution," Portuguese Economic Journal, Springer;Instituto Superior de Economia e Gestao, vol. 24(3), pages 393-418, September.
    3. Quan, Yingyue, 2025. "Firm sorting, clustering, and vertical disintegration: Evidence from China," Regional Science and Urban Economics, Elsevier, vol. 110(C).

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