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COMPETITIVE AND IMPERFECTLY COMPETITIVE LABOR MARKETS IN URBAN AREAS *
Author(s) -
Nakagome Masaki
Publication year - 1991
Publication title -
journal of regional science
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 1.171
H-Index - 79
eISSN - 1467-9787
pISSN - 0022-4146
DOI - 10.1111/j.1467-9787.1991.tb00140.x
Subject(s) - economics , profit maximization , imperfect competition , imperfect , microeconomics , perfect competition , competition (biology) , wage , profit (economics) , space (punctuation) , maximization , labour economics , ecology , linguistics , philosophy , biology
. In this paper, I present a model incorporating two kinds of spatial labor markets: a centralized competitive market at the central business district (CBD) and dispersed local markets across economic space under imperfect competition. Wage differentials and the size of the two types of markets are endogenously determined by rational choices of workers as well as profit maximization of firms. Workers can exercise rational choices with respect to market places where they commute and supply their labor. In this model, I attempt, in effect, to integrate the Hotelling‐type paradigm and the Samuelson‐type paradigm in a consistent spatial setting.