Combes, Pierre-Philippe; Duranton, Gilles; Gobillon, Laurent - Institute for the Study of Labor (IZA) - 2012
Firms are more productive on average in larger cities. Two main explanations have been offered: firm selection (larger … a generalised version of a tractable firm selection model and a standard model of agglomeration. Stronger selection in … distribution. Using this prediction, French establishment level data, and a new quantile approach, we show that firm selection …