While there is a wealth of literature dealing with the spatial nature of knowledge and its transferral, I argue that the underlying mechanisms have not been sufficiently understood. Existing research relating the geography of inflows to firm productivity does not adequately address firm and...

This paper investigates whether labor mobility varies with the degree of agglomeration and, if so, how the differences can be explained. The theoretical basis rests on the advantages agglomerations exhibit in providing a large pooled labor market, one of Marshall's famous three sources of...

This paper provides evidence that labor reallocation from the manufacturing into the non-manufacturing sector causes an increase in sorting of high-skilled (low-skilled) workers into high-paying (low-paying) firms and thereby triggers a rise in wage inequality. I use data on 50% of all West...

The present paper describes the modelling of regional labour markets in the newly developed dynamic spatial general equilibrium model RHOMOLO, where the labour market equilibrium is determined by firms' labour demand, a wage-curve determining unemployment, and interregional labour migration. The...