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

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.

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Year of publication:	2001
Authors:	Picard, Pierre M. ; Toulemonde, Eric
Publisher:	Bonn : Institute for the Study of Labor (IZA)
Subject:	Standorttheorie \| Agglomerationseffekt \| Regionaler Arbeitsmarkt \| Arbeitsmarktflexibilisierung \| Mindestlohn \| Regionale Konzentration \| Regionale Disparität \| Theorie \| Firms location \| persistence \| wages

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Series:	IZA Discussion Papers ; 248
Type of publication:	Book / Working Paper
Type of publication (narrower categories):	Working Paper
Language:	English
Other identifiers:	835541444 [GVK] hdl:10419/21097 [Handle]
Classification:	J23 - Employment Determination; Job Creation; Demand for Labor; Self-Employment ; R30 - Real Estate Markets, Spatial Production Analysis, and Firm Location. General
Source:	EconStor

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