Teulings, Coen N.; Gautier, P.A. - Tinbergen Instituut - 2002
search for a job-type that matches their skill. They face a trade-off between match quality and the cost of extended search …. This trade-off differs between regions, because search is more efficient in larger regions. Then, interregional mobility … and trade lead to a pattern of specialization where large scale regions have a comparative advantage in producing …