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Title:Heterogenous skills and homogeneous land: segmentation and agglomeration PDF Logo
Authors:Wrede, Matthias
Issue Date:2009
Series/Report no.:Joint discussion paper series in economics 2009,22
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 heterogenous 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.
Subjects:Skill heterogeneity
land use
segmentation
agglomeration
JEL:R12
R13
R14
Document Type:Working Paper
Appears in Collections:MAGKS Joint Discussion Paper Series in Economics, Universität Marburg

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