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Endogenous Qualifications and Firms' Agglomeration

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  • P Picard
  • E Toulemonde

Abstract

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.
(This abstract was borrowed from another version of this item.)
(This abstract was borrowed from another version of this item.)

Suggested Citation

  • P Picard & E Toulemonde, 2001. "Endogenous Qualifications and Firms' Agglomeration," The School of Economics Discussion Paper Series 0105, Economics, The University of Manchester.
  • Handle: RePEc:man:sespap:0105
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Ottaviano, Gianmarco & Thisse, Jacques-Francois, 2004. "Agglomeration and economic geography," Handbook of Regional and Urban Economics,in: J. V. Henderson & J. F. Thisse (ed.), Handbook of Regional and Urban Economics, edition 1, volume 4, chapter 58, pages 2563-2608 Elsevier.
    2. Toulemonde, Eric, 2006. "Acquisition of skills, labor subsidies, and agglomeration of firms," Journal of Urban Economics, Elsevier, vol. 59(3), pages 420-439, May.
    3. Joe Tharakan & Jean-Philippe Tropeano, 2009. "On The Impact Of Labor Market Matching On Regional Disparities," Journal of Regional Science, Wiley Blackwell, vol. 49(1), pages 57-80.
    4. Picard, Pierre M. & Wildasin, David, 2009. "Labor Market Pooling, Outsourcing and Labor Contracts," IZA Discussion Papers 4357, Institute for the Study of Labor (IZA).
    5. PICARD, Pierre M. & WILDASIN, David E., 2006. "Labor market pooling, outsourcing and contracts in Chamberlinian regions," CORE Discussion Papers 2006060, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
    6. Pierre M. Picard & David E. Wildasin, 2005. "Labor Market Pooling, Outsourcing and Contracts in Chamberlinian Cities," The School of Economics Discussion Paper Series 0520, Economics, The University of Manchester.

    More about this item

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

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