We analyse how spatial disparities in innovation activities, coupled with migration costs, affect economic geography, growth and regional inequality. We provide conditions for existence and uniqueness of a spatial equilibrium, and for the endogenous emergence of industry clusters. Spatial...

In this paper we develop a Cournot duopoly model to assess how workplace unions affect process and product innovation. We consider an industrial relations system where firm- and industry-level organizations coexist. In the spirit of the literature on voice, we assume that local bodies decrease...

Labor reallocation is often regarded as an essential component of productivity growth, based on the thought that innovation is made by firms expanding to new business areas with better technology (horizontal innovation). I study the relationship between long-run growth and labor reallocation by...