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Will there be a concentration of alikes? The impact of labor market structure on industry mix in the presence of product market shocks

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dc.creator Stahl, Konrad O.
dc.creator Walz, Uwe
dc.date 2001
dc.date.accessioned 2013-10-16T07:04:45Z
dc.date.available 2013-10-16T07:04:45Z
dc.date.issued 2013-10-16
dc.identifier http://hdl.handle.net/10419/19411
dc.identifier ppn:332890708
dc.identifier RePEc:zbw:hwwadp:26362
dc.identifier.uri http://koha.mediu.edu.my:8181/xmlui/handle/10419/19411
dc.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.
dc.language eng
dc.relation HWWA Discussion Paper 140
dc.rights http://www.econstor.eu/dspace/Nutzungsbedingungen
dc.subject L1
dc.subject J4
dc.subject R3
dc.subject ddc:330
dc.subject local labor market
dc.subject product market shocks
dc.subject industry structure
dc.subject imperfect competition
dc.subject Regionalökonomik
dc.subject Regionale Wirtschaftsstruktur
dc.subject Regionaler Arbeitsmarkt
dc.subject Arbeitsmarktsegmentierung
dc.subject Regionale Konzentration
dc.subject Schock
dc.subject Betriebliche Standortwahl
dc.subject Umschulung
dc.subject Anpassungskosten
dc.subject Theorie
dc.title Will there be a concentration of alikes? The impact of labor market structure on industry mix in the presence of product market shocks
dc.type doc-type:workingPaper


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