We incorporate the now standard knowledge-capital model of multinational firms in a new economic geography setting. The … theoretical predictions of our model suggest that unskilled labor mobility leads to less concentration of production than skilled … labor mobility does. This is in line with empirical evidence that agglomeration of production among European nations is less …

We incorporate the now standard knowledge-capital model of multinational firms in a new economic geography setting. The … theoretical predictions of our model suggest that unskilled labor mobility leads to less concentration of production than skilled … labor mobility does. This is in line with empirical evidence that agglomeration of production among European nations is less …

with volatile stock markets where shareholders design compensation schemes that incentivize managers to stimulate short …