Labor Market Pooling, Outsourcing and Contracts in Chamberlinian Regions
CORE Discussion Paper No. 2006/60
40 Pages Posted: 28 Aug 2006
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: Suggested Citation
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