Discussion paper

DP5087 Is the Division of Labour Limited By the Extent of the Market? Evidence from French Cities

This paper provides some evidence that the division of labour is limited by the extent of the (local) market. We first propose a theoretical model. Its main prediction is that scarce occupations are over-represented in large cities. Using census data for French cities, we then provide strong empirical support for this prediction.

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Citation

Duranton, G and H Jayet (2005), ‘DP5087 Is the Division of Labour Limited By the Extent of the Market? Evidence from French Cities‘, CEPR Discussion Paper No. 5087. CEPR Press, Paris & London. https://cepr.org/publications/dp5087