Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/120048 
Authors: 
Year of Publication: 
2011
Series/Report no.: 
51st Congress of the European Regional Science Association: "New Challenges for European Regions and Urban Areas in a Globalised World", 30 August - 3 September 2011, Barcelona, Spain
Publisher: 
European Regional Science Association (ERSA), Louvain-la-Neuve
Abstract: 
Using a simple two-region model with the positive and negative effects of labor heterogeneity, we investigate the agglomeration pattern of entrepreneurs and the commuting pattern of heterogeneous workers. Labor heterogeneity is a source of productivity for e.g. high-tech industries as well as is an obstacle to e.g. mass production. As a result, we show that entrepreneurs tend to concentrate to a region hence regional labor markets are united with interregional commuting when (i) the commuting cost or (ii) the adjustment cost of labor heterogeneity is low, and when (iii) the input of heterogeneous labor is large. These results explain: the progress of urbanization with the decrease in commuting costs; the difference in the agglomeration tendency of industries.
Document Type: 
Conference Paper

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