We develop a model of a city populated by heterogeneous agents. Agents self-select into entrepreneurship, and entrepreneurs set up firms which hire workers. We characterize the equilibrium matching between firms and workers, as well as the within-city assignment of agents to locations. We then...

At present we witness an increasing regional competition at global scale, pointing out the regions' permanent efforts to adjust to the new trends and to benefit from potential competitive advantages. In such a complex environment the situation of the winners and losers is very dynamic, an...