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DIVERSITY IN URBAN LABOR MARKETS AND AGGLOMERATION ECONOMIES
Author(s) -
Kim Sunwoong
Publication year - 1987
Publication title -
papers in regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 0.937
H-Index - 64
eISSN - 1435-5957
pISSN - 1056-8190
DOI - 10.1111/j.1435-5597.1987.tb01053.x
Subject(s) - economies of agglomeration , diversity (politics) , productivity , economics , labour economics , wage , economies of scale , market size , urban economics , personnel economics , economic geography , labor relations , international economics , microeconomics , economic growth , sociology , anthropology
A modern economy is characterized by diverse mid specialized urban labor markets. In this paper, agglomeration economics are explained by labor specialization in these markets. With increasing returns to scale and with heterogeneous labor and technology. I show that average productivity increases with the size of the market because of better matches between workers and firms. Thus, the net wage increases as the size of the market increases.