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Firm Location and Job Creation in Cities

Author

Listed:
  • Fujita, Masahisa
  • Thisse, Jacques-François
  • Zenou, Yves

Abstract

Cities are often viewed as places fostering employment. It is shown that the choice of a particular location within a city is a key factor for the creation of jobs by a new firm. This question is addressed in the context of a standard urban model in which existing firms are established at the city center and where workers compete on both the land and labour markets. The new firm is supposed to anticipate the impact of its location and wage decision on those two markets. Different urban configurations then emerge depending on the competitiveness of the existing firms on the labour market. More jobs are created as the firm sets up further away from the city center.

Suggested Citation

  • Fujita, Masahisa & Thisse, Jacques-François & Zenou, Yves, 1994. "Firm Location and Job Creation in Cities," CEPR Discussion Papers 1011, C.E.P.R. Discussion Papers.
  • Handle: RePEc:cpr:ceprdp:1011
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    Citations

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    Cited by:

    1. Jacques-François Thisse & Yves Zenou, 1995. "Appariement et concurrence spatiale sur le marché du travail," Revue Économique, Programme National Persée, vol. 46(3), pages 615-624.
    2. Boiscuvier, Éléonore, 2001. "Innovation, intégration et développement régional," L'Actualité Economique, Société Canadienne de Science Economique, vol. 77(2), pages 255-280, juin.

    More about this item

    Keywords

    Firm Location; Job Creation; Labour Migration; Urban Configurations;

    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • R30 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - General

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