Firms Agglomeration and Unions

Pierre Picard and Eric Toulemonde

No 3323, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: This Paper develops a model in which the interaction between product market imperfections, transportation costs, unions and workers immobility across regions creates a tendency for agglomeration of firms when transportation costs are low. The model fits quite well the European experience. It is able to explain the emergence of a centre-periphery pattern with equally populated regions. In the centre, most people work in the unionized industry and earn large wages. In contrast, workers in the periphery are employed at a low wage in a constant return to scale industry.

Keywords: Agglomeration; Monopolistic competition; Unions (search for similar items in EconPapers)
JEL-codes: F12 F15 J51 R12 (search for similar items in EconPapers)
Date: 2002-04
New Economics Papers: this item is included in nep-geo and nep-ind
References: Add references at CitEc
Citations:

Downloads: (external link)
https://cepr.org/publications/DP3323 (application/pdf)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at subscribers@cepr.org

Related works:
Journal Article: Firms agglomeration and unions (2006)
Working Paper: Firms agglomeration and unions (2006)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:3323

Ordering information: This working paper can be ordered from
https://cepr.org/publications/DP3323

Access Statistics for this paper

More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().