Regional asymmetries: Economies of agglomeration versus unionized labor markets

Pierre Picard, Eric Toulemonde

    Research output: Contribution to journalArticlepeer-review

    Abstract

    We study the geographical location of a unionized manufacturing industry under technological externalities. When firms benefit from locating in the vicinity of similar firms, we show that they locate in symmetric, partially asymmetric or single clusters. We examine the effects of changes in the productivity parameters, in the product demand parameters and in the union characteristics. Finally, we explore the possibility of hysteresis in firm location and we analyze the welfare implication of a change in union power. © 2002 Elsevier Science B.V. All rights reserved.
    Original languageEnglish
    Pages (from-to)223-249
    Number of pages27
    JournalRegional Science and Urban Economics
    Volume33
    DOIs
    Publication statusPublished - 1 Mar 2003

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