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:	2001-01
Authors:	Picard, Pierre M. ; Toulemonde, Eric
Institutions:	Institute for the Study of Labor (IZA)
Subject:	Firms location \| persistence \| wages

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Extent:	application/pdf
Series:	IZA Discussion Papers.
Type of publication:	Book / Working Paper
Notes:	The text is part of a series 2 Number 248 32 pages
Classification:	J23 - Employment Determination; Job Creation; Demand for Labor; Self-Employment ; R30 - Real Estate Markets, Spatial Production Analysis, and Firm Location. General
Source:	RePEc - Research Papers in Economics

Persistent link: https://www.econbiz.de/10005761697