Firms agglomeration and unions

P.M. Picard, E. Toulemonde

    Research output: Contribution to journalArticlepeer-review

    Abstract

    Economic geography models predict the agglomeration of manufacturing activies only if the workforce is mobile. Still, as the E.U.'s experience shows, core-periphery patterns exist even though the workforce is rather immobile. The paper provides a theoretical explanation for such core-periphery patterns through the effect that unions have on firms' incentive to agglomerate in a region. The paper offers fully analytical results about location equilibria and some interesting welfare properties. © 2005 Elsevier B.V. All rights reserved.
    Original languageEnglish
    Pages (from-to)669-694
    Number of pages26
    JournalEuropean Economic Review
    Volume50
    DOIs
    Publication statusPublished - 1 Apr 2006

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