Will There Be a Concentration of Alikes? The Impact of Labor Market Structure on Industry Mix in the Presence of Product Market Shocks
| dc.creator | Stahl, Konrad | |
| dc.creator | Walz, Uwe | |
| dc.date | 2017-04-01T13:53:50Z | |
| dc.date.accessioned | 2026-07-09T03:54:26Z | |
| 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.identifier | doi:10.22004/ag.econ.26362 | |
| dc.identifier | https://ageconsearch.umn.edu/record/26362/files/dp010140.pdf | |
| dc.identifier | http://ageconsearch.umn.edu/record/26362 | |
| dc.identifier.uri | http://hdl.handle.net/123456789/541776 | |
| dc.language | eng | |
| dc.publisher | ||
| dc.source | http://ageconsearch.umn.edu/record/26362 | |
| 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 | Text |