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http://dspace.mediu.edu.my:8181/xmlui/handle/10419/19411| Title: | Will there be a concentration of alikes? The impact of labor market structure on industry mix in the presence of product market shocks |
| Keywords: | L1 J4 R3 ddc:330 local labor market product market shocks industry structure imperfect competition Regionalökonomik Regionale Wirtschaftsstruktur Regionaler Arbeitsmarkt Arbeitsmarktsegmentierung Regionale Konzentration Schock Betriebliche Standortwahl Umschulung Anpassungskosten Theorie |
| Issue Date: | 16-Oct-2013 |
| Description: | We analyze determinants of regional industry mix and focus especially on the influence of labor market characteristics. By combining a labor market pooling argument with an argument involving the cost of switching a worker from one firm to another, we show that in the presence of product market shocks there exists an interesting trade-off for the concentration of firms of the same industry in one region. Firms belonging to different industries are hedged against industry-specific shocks if they settle in the same region, but face higher switching costs (retraining costs for workers moving from one firm to another). In addition, with a given supply of labor there is an additional rationing effect affecting the location decisions of firms. Against the background of these trade-offs we analyze the resulting location decisions of firms in a two-regions-two-industry-four-firm framework. We analyze the impact of different parameters on the location choice of firms. |
| URI: | http://koha.mediu.edu.my:8181/xmlui/handle/10419/19411 |
| Other Identifiers: | http://hdl.handle.net/10419/19411 ppn:332890708 RePEc:zbw:hwwadp:26362 |
| Appears in Collections: | EconStor |
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