Labor Market Pooling, Outsourcing and Contracts in Chamberlinian Regions

CORE Discussion Paper No. 2006/60

40 Pages Posted: 28 Aug 2006

See all articles by Pierre M. Picard

Pierre M. Picard

Centre de Recherche en Économie Appliquée (CREA); Universite du Luxembourg

David E. Wildasin

University of Kentucky; CESifo (Center for Economic Studies and Ifo Institute for Economic Research); Institute for the Study of Labor (IZA); University of Oxford - Oxford University Centre for Business Taxation

Date Written: June 2006

Abstract

Economic regions, such as urban agglomerations, face external demand and price shocks that produce income risk. Workers in large and diversified agglomerations may benefit from reduced wage volatility, while firms may outsource the production of intermediate goods and realize benefits from Chamberlinian externalities. Firms may also protect workers from wage risks through fixed wage contracts. This paper explores the relationships between firms' risks, workers' contracts, and the structure of production in cities.

Keywords: Labor market, Labor contracts, Chamberlinian Externalities

JEL Classification: R12, R23, J31, J65

Suggested Citation

Picard, Pierre M. and Wildasin, David E., Labor Market Pooling, Outsourcing and Contracts in Chamberlinian Regions (June 2006). CORE Discussion Paper No. 2006/60, Available at SSRN: https://ssrn.com/abstract=926526 or http://dx.doi.org/10.2139/ssrn.926526

Pierre M. Picard (Contact Author)

Centre de Recherche en Économie Appliquée (CREA) ( email )

Campus Limpertsberg
162A, avenue de la Faïencerie
Luxembourg, 1511
Luxembourg

Universite du Luxembourg

L-1511 Luxembourg
Luxembourg

David E. Wildasin

University of Kentucky ( email )

Department of Economics
Lexington, KY 40546
United States

CESifo (Center for Economic Studies and Ifo Institute for Economic Research)

Poschinger Str. 5
Munich, DE-81679
Germany

Institute for the Study of Labor (IZA)

P.O. Box 7240
Bonn, D-53072
Germany

University of Oxford - Oxford University Centre for Business Taxation ( email )

Saïd Business School
Park End Street
Oxford, OX1 1HP
United Kingdom

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