This paper proposes a new model generating city size distributions that asymptotically follow the log-normal distribution. The log-normal distribution is consistent with Zipf’s law in the top tail, which is known to hold for many countries in different periods. The key feature of our model is...

I propose a language theory of labor market segmentation. People of different language origins form separate urban labor submarkets and can switch between submarkets. Two types of wage differentials emerge, namely the Within-Labor-Market Wage Gap and the Within-Language-Group Wage Gap. The...