Heterogeneous Skills and Homogeneous Land: Segmentation and Agglomeration

Matthias Wrede

No 200922, MAGKS Papers on Economics from Philipps-Universität Marburg, Faculty of Business Administration and Economics, Department of Economics (Volkswirtschaftliche Abteilung)

Abstract: This paper analyzes the impact of skill heterogeneity on regional patterns of production and housing in the presence of pecuniary externalities within a general-equilibrium framework assuming monopolistic competition at intermediate good markets. It shows that the interplay of heterogeneous skills and relatively homogeneous land demand triggers skill segmentation and agglomeration. The core region, being more attractive to high skilled workers, has a disproportionately large share of production at all levels of the supply chain. The paper studies the effects on segmentation and agglomeration of interregional trade in intermediate goods, attachment to home, the presence of immobile unskilled workers, various conditions at local land markets, and federal taxation.

Keywords: Skill heterogeneity; land use; segmentation; agglomeration. (search for similar items in EconPapers)
JEL-codes: R12 R13 R14 (search for similar items in EconPapers)
Pages: 34 pages
Date: 2009
New Economics Papers: this item is included in nep-geo and nep-ure
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https://www.uni-marburg.de/en/fb02/research-groups ... rs/22-2009_wrede.pdf Second version, 2009 (application/pdf)

Related works:
Journal Article: Heterogeneous skills and homogeneous land: segmentation and agglomeration (2013)
Working Paper: Heterogeneous skills and homogeneous land: Segmentation and agglomeration (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:mar:magkse:200922

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