DP3324 Spatial Mismatch and Skill Accumulation
|Author(s):||Philippe Monfort, Gianmarco Ottaviano|
|Publication Date:||April 2002|
|Keyword(s):||agglomeration, dual labour markets, skill accumulation, spatial mismatch|
|JEL(s):||F12, L13, R13|
|Programme Areas:||International Trade and Regional Economics|
|Link to this Page:||cepr.org/active/publications/discussion_papers/dp.php?dpno=3324|
Increasing returns in matching between skilled workers and firms create a local thick-market externality when labour markets are geographically segmented. This generates an agglomeration force that can offset the dispersion force due to local competition in a segmented product market. When this is the case, only some regions specialize in high-skill productions while others are caught in a low-skill trap.