[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.
Disciplines :
Systèmes économiques & économie publique
Auteur, co-auteur :
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 ; University of Luxembourg > Faculty of Law, Economics and Finance (FDEF) > Center for Research in Economic Analysis (CREA)
