Spatial Mismatch and Skill Accumulation

32 Pages Posted: 21 May 2002

See all articles by Gianmarco I.P. Ottaviano

Gianmarco I.P. Ottaviano

Bocconi University - Department of Economics and Paolo Baffi Centre on Central Banking and Financial Regulation

Philippe Monfort

Catholic University of Louvain (UCL) - Institut de Recherches Economiques et Sociales (IRES)

Date Written: April 2002

Abstract

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.

Keywords: Agglomeration, spatial mismatch, dual labour markets, skill accumulation

JEL Classification: F12, L13, R13

Suggested Citation

Ottaviano, Gianmarco I.P. and Monfort, Philippe, Spatial Mismatch and Skill Accumulation (April 2002). Available at SSRN: https://ssrn.com/abstract=313191

Gianmarco I.P. Ottaviano

Bocconi University - Department of Economics and Paolo Baffi Centre on Central Banking and Financial Regulation ( email )

Via Gobbi 5
Milan, 20136
Italy

Philippe Monfort (Contact Author)

Catholic University of Louvain (UCL) - Institut de Recherches Economiques et Sociales (IRES) ( email )

3, Place Montesquieu
1348 Louvain-la-Neuve
Belgium
+32 10 473 801 (Phone)
+32 10 473 945 (Fax)

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