Picard, Pierre
[UCL]
Toulemonde, Eric
This paper analyzes firms' location when workers endogenously choose to qualify for professional skills but when they remain uncertain about the potential match between their personal abilities and/or affinities and the firms' specific production tasks. By qualifying in a region where firms agglomerate, workers benefit from higher prospects of good match. At the equilibrium, we show that firms may locate in a single cluster, symmetric clusters or even asymmetric clusters. Comparative statics with respect to product market demand and labor supply parameters are provided.
Bibliographic reference |
Picard, Pierre ; Toulemonde, Eric. Endogenous qualifications and firms' agglomeration. CORE Discussion Papers ; 2002/70 (2002) |
Permanent URL |
http://hdl.handle.net/2078.1/4314 |