On the impact of labor market matching on regional disparities (CORE Discussion Paper 2008/46)

J. Tharakan and Jean-Philippe Tropeano

Working Papers from Grenoble Applied Economics Laboratory (GAEL)

Abstract: We propose a model where imperfect matching between firms and workers on local labor markets leads to incentives for spatial agglomeration. We show that the occurence of spatial agglomeration depends on initial size differences in terms of both number of workers and firms. Allowing for dynamics of workers' and firms' location choices, we show that the spatial outcome depends crucially on different dimensions of agents' mobility. The effect of a higher level of human capital on regional disparities depends on whether it makes workers more mobile or more specialized on the labor market.

JEL-codes: J42 J61 R12 (search for similar items in EconPapers)
Date: 2008
New Economics Papers: this item is included in nep-geo, nep-hrm, nep-lab and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:gbl:wpaper:200802

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