Arbeitspapier

The Impact of Labor Markets on Emergence and Persistence of Regional Asymmetries

This paper investigates the impact of labor markets and economies of agglomeration on firms location. We show that the existence of a lower bound on wage (e.g. a minimum wage or a reservation wage) introduces asymmetric location of firms. Moreover, changes in that lower bound or in global product demand may induce irreversible changes in location equilibria. Asymmetries in firms location may thus emerge and persist.

Language
Englisch

Bibliographic citation
Series: IZA Discussion Papers ; No. 248

Classification
Wirtschaft
Labor Demand
Real Estate Markets, Spatial Production Analysis, and Firm Location: General
Subject
Firms location
persistence
wages
Standorttheorie
Agglomerationseffekt
Regionaler Arbeitsmarkt
Arbeitsmarktflexibilisierung
Mindestlohn
Regionale Konzentration
Regionale Disparität
Theorie

Event
Geistige Schöpfung
(who)
Picard, Pierre M.
Toulemonde, Eric
Event
Veröffentlichung
(who)
Institute for the Study of Labor (IZA)
(where)
Bonn
(when)
2001

Handle
Last update
10.03.2025, 11:43 AM CET

Data provider

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Object type

  • Arbeitspapier

Associated

  • Picard, Pierre M.
  • Toulemonde, Eric
  • Institute for the Study of Labor (IZA)

Time of origin

  • 2001

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