Resource title

The Impact of Labor Markets on Emergence and Persistence of Regional Asymmetries

Resource image

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Resource description

This paper investigates the impact of labor markets and economies of agglomeration on firms location. We show that the existence of a lower bound on wage (e.g. a minimum wage or a reservation wage) introduces asymmetric location of firms. Moreover, changes in that lower bound or in global product demand may induce irreversible changes in location equilibria. Asymmetries in firms location may thus emerge and persist.

Resource author

Pierre M. Picard, Eric Toulemonde

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Resource publish date

Resource language

eng

Resource content type

text/html

Resource resource URL

http://hdl.handle.net/10419/21097

Resource license

Adapt according to the presented license agreement and reference the original author.