Spatial Mismatch and Skill Accumulation

Gianmarco Ottaviano and Philippe Monfort

No 3324, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: Increasing returns in matching between skilled workers and firms create a local thick-market externality when labour markets are geographically segmented. This generates an agglomeration force that can offset the dispersion force due to local competition in a segmented product market. When this is the case, only some regions specialize in high-skill productions while others are caught in a low-skill trap.

Keywords: Agglomeration; Spatial mismatch; Dual labour markets; Skill accumulation (search for similar items in EconPapers)
JEL-codes: F12 L13 R13 (search for similar items in EconPapers)
Date: 2002-04
New Economics Papers: this item is included in nep-geo and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (8)

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