On the impact of labor market matching on regional disparities

Tharakan, Joe;Tropeano, Jean-Philippe
(2009) Journal of Regional Science — Vol. 49, n° 1, p. 57-80 (2009)

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  • Tharakan, JoeUniversité de Liège
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  • Tropeano, Jean-Philippe
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Abstract
We propose a model where imperfect matching between firms and workers on local labour markets leads to incentives for spatial agglomeration. We show that the occurrence of spatial agglomeration depends on initial size differences in terms of both number of workers and firms. Allowing for dynamics of workers' and firms' location choices, we show that the spatial outcome depends crucially on different dimensions of agents' mobility. The effect of a higher level of human capital on regional disparities depends on whether it makes workers more mobile or more specialized on the labor market.
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Tharakan, J., & Tropeano, J.-P. (2009). On the impact of labor market matching on regional disparities. Journal of Regional Science, 49(1), 57-80. https://doi.org/10.1111/j.1467-9787.2008.00600.x (Original work published 2009)