Firms agglomeration and unions

Pierre Picard; Pierre M. Picard; Eric Toulemonde

doi:10.1016/j.euroecorev.2004.10.009

Firms agglomeration and unions

Pierre Picard, Pierre M. Picard, Eric Toulemonde

Economics

Research output: Contribution to journal › Article › peer-review

Abstract

Economic geography models predict the agglomeration of manufacturing activies only if the workforce is mobile. Still, as the E.U.'s experience shows, core-periphery patterns exist even though the workforce is rather immobile. The paper provides a theoretical explanation for such core-periphery patterns through the effect that unions have on firms' incentive to agglomerate in a region. The paper offers fully analytical results about location equilibria and some interesting welfare properties. © 2005 Elsevier B.V. All rights reserved.

Original language	English
Pages (from-to)	669-694
Number of pages	25
Journal	European Economic Review
Volume	50
Issue number	3
DOIs	https://doi.org/10.1016/j.euroecorev.2004.10.009
Publication status	Published - Apr 2006

Keywords

Agglomeration
Monopolistic competition
Unions

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10.1016/j.euroecorev.2004.10.009

Cite this

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title = "Firms agglomeration and unions",

abstract = "Economic geography models predict the agglomeration of manufacturing activies only if the workforce is mobile. Still, as the E.U.'s experience shows, core-periphery patterns exist even though the workforce is rather immobile. The paper provides a theoretical explanation for such core-periphery patterns through the effect that unions have on firms' incentive to agglomerate in a region. The paper offers fully analytical results about location equilibria and some interesting welfare properties. {\textcopyright} 2005 Elsevier B.V. All rights reserved.",

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AB - Economic geography models predict the agglomeration of manufacturing activies only if the workforce is mobile. Still, as the E.U.'s experience shows, core-periphery patterns exist even though the workforce is rather immobile. The paper provides a theoretical explanation for such core-periphery patterns through the effect that unions have on firms' incentive to agglomerate in a region. The paper offers fully analytical results about location equilibria and some interesting welfare properties. © 2005 Elsevier B.V. All rights reserved.

KW - Agglomeration

KW - Monopolistic competition

KW - Unions

U2 - 10.1016/j.euroecorev.2004.10.009

DO - 10.1016/j.euroecorev.2004.10.009

M3 - Article

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VL - 50

SP - 669

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JO - European Economic Review

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Firms agglomeration and unions

Abstract

Keywords

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