Economic geography of firms and skilled labor

"This paper investigates the relationship between firm location and skilled-labor location. While existing new economic geography (NEG) models could not explicitly analyze the relationship due to their assumptions, I construct a new NEG-type model allowing for different location dynamics of fir...

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Bibliographic Details
Published in:Journal of regional science 2011-10, Vol.51 (4), p.784-803
Main Author: Takatsuka, Hajime
Format: Article
Language:English
Subjects:
Arbeitskräfteangebot
Arbeitsmigration
Arbeitsmobilität
Auslandsinvestition
Außenhandel
Bgi / Prodig
China
Economic geography
Economic models
Geography of industry and energy
Human geography
Indexing in process
India
Industrial structures. Firms
Labor economics
Labour market
Labour mobility
Liberalisierung
Location of enterprises
Location of industry
Qualifikationsstruktur
Regionale Mobilität
Skilled workers
Skills
Standort
Standortfaktor
Standortwahl
Studies
Theorie
Trade
Transaktionskosten
Unternehmen
Wirtschaftsgeografie
Ökonomische Determinanten
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Summary:"This paper investigates the relationship between firm location and skilled-labor location. While existing new economic geography (NEG) models could not explicitly analyze the relationship due to their assumptions, I construct a new NEG-type model allowing for different location dynamics of firms and skilled labor for this objective. The main results are as follows. First, a relatively large pool of skilled labor attracts firms when trade costs are small, while it might repel firms when trade costs are sufficiently large. Second, assuming that skilled workers are mobile between regions, the model shows that skilled workers agglomerate faster than firms with decreasing trade costs. Third, the model supports the hypothesis that firms follow skilled labor rather than the reverse. These results are consistent to Indian and Chinese experiences, and some 'creative-class' or 'skilled-city' stories." (Author's abstract, IAB-Doku). Forschungsmethode: Theoriebildung; Grundlagenforschung.
ISSN:1467-9787
0022-4146
1467-9787
DOI:10.1111/j.1467-9787.2011.00724.x