Is the Division of Labour Limited By the Extent of the Market? Evidence from French Cities

Gilles Duranton and Hubert Jayet

No 5087, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: This paper provides some evidence that the division of labour is limited by the extent of the (local) market. We first propose a theoretical model. Its main prediction is that scarce occupations are over-represented in large cities. Using census data for French cities, we then provide strong empirical support for this prediction.

Keywords: Division of labour; Specialization; Extent of the market (search for similar items in EconPapers)
JEL-codes: J24 J44 R23 (search for similar items in EconPapers)
Date: 2005-05
New Economics Papers: this item is included in nep-geo and nep-ure
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Citations: View citations in EconPapers (11)

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Related works:
Journal Article: Is the division of labour limited by the extent of the market? Evidence from French cities (2011)
Working Paper: Is the division of labour limited by the extent of the market? Evidence from French cities (2011)
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