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Agglomeration of low-productive entrepreneurs to large regions: a simple model

Rikard Forslid and Toshihiro Okubo

Spatial Economic Analysis, 2021, vol. 16, issue 4, 471-486

Abstract: This paper develops a simple model of spatial sorting where the least productive entrepreneurs are drawn to the large core region. This is an unusual feature. The literature on spatial sorting typically shows how the most productive individuals and firms agglomerate to the core. However, our model is consistent with empirical evidence that reveals that large agglomerations also attract the low skilled.

Date: 2021
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Citations: View citations in EconPapers (2)

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Working Paper: Agglomeration of Low-productive Entrepreneurs to Large Regions: A Simple Model (2019) Downloads
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DOI: 10.1080/17421772.2021.1884280

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