We investigate the role of complementarities in production and skill mobility across cities. We propose a general equilibrium model of location choice by heterogeneously skilled workers, and consider different degrees of complementarities between the skills of workers. The nature of the...

We model the evolution of CEO quality in family firms. Agents learn about their own qualities over time by observing the successful outcome of their own actions, while failures drive agents out of the market. We show that joining the family business, while reducing the probability of failure,...

We propose a theory of firm production that requires diverse inputs. We show that in a competitive labor market, firms differ in their skill composition. Organizations with higher Total Factor Productivity (TFP) are larger and hire from a broader range of skills. Technological progress leads to...