Fafchamps and Shilpi examine how economic activity and market participation are distributed across space. Applying a nonparametric von Thunen model to Nepalese data, the authors uncover a strong spatial division of labor. Nonfarm employment is concentrated in and around cities, while...

the authors examine how economic activity and market participation are distributed across space. Applying a nonparametric von Thunen model to Nepalese data, the authors uncover a strong spatial division of labor. Nonfarm employment is concentrated in and around cities, while agricultural wage...