Endogenous qualifications and firms' agglomeration

P.M. Picard, E. Toulemonde

Research output: Contribution to journalArticle

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. © 2003 Elsevier Inc. All rights reserved.
Original languageEnglish
Pages (from-to)458-477
Number of pages20
JournalJournal of Urban Economics
Volume55
DOIs
Publication statusPublished - 1 May 2004

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