Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/21097 
Year of Publication: 
2001
Series/Report no.: 
IZA Discussion Papers No. 248
Publisher: 
Institute for the Study of Labor (IZA), Bonn
Abstract: 
This paper investigates the impact of labor markets and economies of agglomeration on firms location. We show that the existence of a lower bound on wage (e.g. a minimum wage or a reservation wage) introduces asymmetric location of firms. Moreover, changes in that lower bound or in global product demand may induce irreversible changes in location equilibria. Asymmetries in firms location may thus emerge and persist.
Subjects: 
Firms location
persistence
wages
JEL: 
J23
R30
Document Type: 
Working Paper

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