Reference : Unions and Firms Agglomeration
Scientific journals : Article
Business & economic sciences : Economic systems & public economics
Unions and Firms Agglomeration
Toulemonde, Eric [Centre de Recherche en Économie Régionale et Politique Économique (CERPE) Faculté des Sciences Économiques, Sociales et de Gestion (FSESG) Université de Namur > > > ; Institute for the Study of Labor (IZA)]
Picard, Pierre M mailto [University of Luxembourg > Faculty of Law, Economics and Finance (FDEF) > Center for Research in Economic Analysis (CREA) >]
European Economic Review
Elsevier Science
Yes (verified by ORBilu)
The Netherlands
[en] Agglomeration ; Monopolistic competition ; Unions
[en] Economic geography models predict the agglomeration of manufacturing activies only if the
workforce is mobile. Still, as the E.U.’s experience shows, core–periphery patterns exist even
though the workforce is rather immobile. The paper provides a theoretical explanation for
such core–periphery patterns through the effect that unions have on firms’ incentive to
agglomerate in a region. The paper offers fully analytical results about location equilibria and
some interesting welfare properties.

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