Reference : Regional Asymmetries: Economies of Agglomeration Versus Unionized Labor Markets
Scientific journals : Article
Business & economic sciences : Economic systems & public economics
http://hdl.handle.net/10993/25465
Regional Asymmetries: Economies of Agglomeration Versus Unionized Labor Markets
English
Picard, Pierre M[University of Luxembourg > Faculty of Law, Economics and Finance (FDEF) > Center for Research in Economic Analysis (CREA) >]
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)]
[en] Economies of agglomeration ; Unions ; Firm location
[en] We study the geographical location of a unionized manufacturing industry under technological externalities. When firms benefit from locating in the vicinity of similar firms, we show that they locate in symmetric, partially asymmetric or single clusters.We examine the effects of changes in the productivity parameters, in the product demand parameters and in the union characteristics. Finally, we explore the possibility of hysteresis in firm location and we analyze the welfare implication of a change in union power.