Agglomeration of low-productive entrepreneurs to large regions: a simple model

Rikard Forslid, Toshihiro Okubo

Research output: Contribution to journalArticlepeer-review

Abstract

This paper develops a simple model of spatial sorting where the least productive entrepreneurs are drawn to the large core region. This is an unusual feature. The literature on spatial sorting typically shows how the most productive individuals and firms agglomerate to the core. However, our model is consistent with empirical evidence that reveals that large agglomerations also attract the low skilled.

Original languageEnglish
JournalSpatial Economic Analysis
DOIs
Publication statusAccepted/In press - 2021

Keywords

  • agglomeration
  • heterogeneous firms
  • spatial sorting

ASJC Scopus subject areas

  • Geography, Planning and Development
  • Economics, Econometrics and Finance(all)
  • Statistics, Probability and Uncertainty
  • Earth and Planetary Sciences (miscellaneous)

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