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Title:The Impact of Labor Markets on Emergence and Persistence of Regional Asymmetries PDF Logo
Authors:Picard, Pierre M.
Toulemonde, Eric
Issue Date:2001
Series/Report no.:IZA Discussion paper series 248
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
Appears in Collections:IZA Discussion Papers, Forschungsinstitut zur Zukunft der Arbeit (IZA)

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