We study labor market competition with heterogeneous firms and consumers. Worker types are continuously distributed within the population and a finite number of firms have specific skill requirements. Specific human capital investment is the cost of training a worker to be able to work for a...

We consider a finite number of firms which compete imperfectly for heterogenous workers. Firms produce a homogeneous good sold on a competitive market and face demand-induced price fluc- tuations. It is then shown that unemployment may arise in equilibrium because of uncertainty on product...

A new approach is proposed to explain the formation of secondary employment centers in a monocentric city. Specifically, a large firm considers locating a new plant in a city where none of the existing businesses has a significative share of the labor force, so that its location can be viewed as...