Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/72450
Authors: 
Tharakan, Joe
Tropeano, Jean-Philippe
Year of Publication: 
2002
Series/Report no.: 
Working Paper Series, UCD Centre for Economic Research 02/27
Abstract: 
We propose a model where imperfect matching between firms and workers on local labor markets leads to spatial agglomeration. We show that the occurrence of spatial agglomeration depends on initial size differences in terms of both number of workers and firms. We analyse the effect of different public policies. In our setting, the effect of a higher level of human capital on regional disparities depends on whether it makes workers more mobile on the labour market or more specialised. Policies that increase workers’ interregional mobility, increase the likelihood that regions diverge. Finally, competition policy is shown to reduce regional disparities.
Subjects: 
Economic geography
local labor market
regional disparities
human capital
JEL: 
J61
J42
R12
Persistent Identifier of the first edition: 
Document Type: 
Working Paper

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