Heterogenous Skills and Homogeneous Land: Segmentation and Agglomeration

This paper analyzes the impact of skill heterogeneity on regional patterns of production and housing in the presence of pecuniary externalities within a general equilibrium framework assuming monopolistic competition at intermediate good markets. It shows that the interplay of heterogenous skills an...

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Xuất bản năm:MAGKS - Joint Discussion Paper Series in Economics (Band 22-2009)
Tác giả chính: Wrede, Matthias
Định dạng: Arbeit
Ngôn ngữ:Tiếng Anh
Được phát hành: Philipps-Universität Marburg 2009
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Tóm tắt:This paper analyzes the impact of skill heterogeneity on regional patterns of production and housing in the presence of pecuniary externalities within a general equilibrium framework assuming monopolistic competition at intermediate good markets. It shows that the interplay of heterogenous skills and relatively homogeneous land demand triggers skill segmentation and agglomeration. The core region, being more attractive to high skilled workers, has a disproportionately large share of production at all levels of the supply chain. The paper studies the effects on segmentation and agglomeration of interregional trade in intermediate goods, attachment to home, the presence of immobile unskilled workers, various conditions at local land markets, and federal taxation.
Mô tả vật lý:34 Seiten
số ISSN:1867-3678
DOI:10.17192/es2024.0003