Heterogeneous Skills and Homogeneous Land: Segmentation and Agglomeration

Journal article

Publication Details

Author(s): Wrede M
Journal: Journal of Economic Geography
Publisher: Oxford University Press (OUP): Policy E - Oxford Open Option D / Oxford University Press (OUP): Policy F
Publication year: 2013
Volume: 13
Journal issue: 5
Pages range: 767-798
ISSN: 1468-2702
Language: English


This article analyzes the effect of skill heterogeneity on regional patterns of production and housing in the presence of pecuniary externalities within a general-equilibrium framework, assuming monopolistic competition in intermediate goods markets. It shows that the interplay of heterogeneous skills and comparatively homogeneous land demand triggers skill segmentation and agglomeration. The core region that is more attractive to high skilled workers has a larger share of production at all levels of the supply chain. The article extensively discusses first-and second-best optima and welfare-increasing tax policies. The article also briefly discusses how trade in intermediate goods and endogenous land demand affect segmentation and agglomeration. © The Author (2012). Published by Oxford University Press. All rights reserved.

FAU Authors / FAU Editors

Wrede, Matthias Prof. Dr.
Lehrstuhl für Volkswirtschaftslehre, insbesondere Sozialpolitik

How to cite

Wrede, M. (2013). Heterogeneous Skills and Homogeneous Land: Segmentation and Agglomeration. Journal of Economic Geography, 13(5), 767-798. https://dx.doi.org/10.1093/jeg/lbs056

Wrede, Matthias. "Heterogeneous Skills and Homogeneous Land: Segmentation and Agglomeration." Journal of Economic Geography 13.5 (2013): 767-798.


Last updated on 2018-19-04 at 02:45