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Spatial Mismatch and Skill Accumulation

  • Monfort, Philippe
  • Ottaviano, Gianmarco

Increasing returns in matching between skilled workers and firms create a local thick-market externality when labour markets are geographically segmented. This generates an agglomeration force that can offset the dispersion force due to local competition in a segmented product market. When this is the case, only some regions specialize in high-skill productions while others are caught in a low-skill trap.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 3324.

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Date of creation: Apr 2002
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Handle: RePEc:cpr:ceprdp:3324
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