Acquisition of skills, labor subsidies, and agglomeration of firms

Résultats de recherche: Contribution à un journal/une revueArticle

Résumé

The paper develops an analytically solvable model of new economic geography in which agglomeration of firms is caused by workers' investment in the acquisition of skills. Skilled workers earn high wages and have a large demand for goods. Since firms are attracted towards the demand, they locate at proximity of skilled workers. More workers invest in the acquisition of skills when more firms ask for these skills. Consequently, partial or full agglomeration of firms may be the location equilibrium. We also show that a reduction in transport costs increases the regional governments' incentives to subsidize the acquisition of skills. © 2005 Elsevier Inc. All rights reserved.
langue originaleAnglais
Pages (de - à)420-439
Nombre de pages20
journalJournal of Urban Economics
Volume59
Les DOIs
étatPublié - 1 mai 2006

Empreinte digitale

agglomeration
subsidy
agglomeration area
labor
firm
skilled worker
worker
economic geography
demand
wage
incentive
Agglomeration
Labor
Subsidies
costs
Skilled workers
Workers

Citer ceci

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author = "E. Toulemonde",
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Acquisition of skills, labor subsidies, and agglomeration of firms. / Toulemonde, E.

Dans: Journal of Urban Economics, Vol 59, 01.05.2006, p. 420-439.

Résultats de recherche: Contribution à un journal/une revueArticle

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