Reference : Endogenous Qualifications and Firms' Agglomeration
Scientific journals : Article
Business & economic sciences : Economic systems & public economics
Endogenous Qualifications 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) >]
Journal of Urban Economics
Academic Press
Yes (verified by ORBilu)
San Diego
[en] This paper analyzes firms' location when workers endogenously choose to qualify for professional skills but when they remain uncertain about the potential match between their personal abilities and/or affinities and the firms' specific production tasks. By qualifying in a region where firms agglomerate, workers benefit from higher prospects of good match. At the equilibrium, we show that firms may locate in a single cluster, symmetric clusters or even asymmetric clusters. Comparative statics with respect to product market demand and labor supply parameters are provided.

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