DP5087 Is the Division of Labour Limited By the Extent of the Market? Evidence from French Cities
|Author(s):||Gilles Duranton, Hubert Jayet|
|Publication Date:||May 2005|
|Keyword(s):||division of labour, extent of the market, specialization|
|JEL(s):||J24, J44, R23|
|Programme Areas:||International Trade and Regional Economics|
|Link to this Page:||cepr.org/active/publications/discussion_papers/dp.php?dpno=5087|
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.