On the endogeneous formation of secondary employment centers in a city

Masahisa Fujita, Jacques François Thisse, Yves Zenou

Research output: Contribution to journalArticleResearchpeer-review

40 Citations (Scopus)

Abstract

A new approach is proposed to explain the formation of secondary employment centers in a monocentric city. Specifically, a large firm considers locating a new plant in a city where none of the existing businesses has a significative share of the labor force, so that its location can be viewed as a secondary employment center. The choice of this location results from the interplay between the process of competition on both the labor and land markets and the technological externalities generated by the proximity of the city center where other firms are located.

Original languageEnglish
Pages (from-to)337-357
Number of pages21
JournalJournal of Urban Economics
Volume41
Issue number3
DOIs
Publication statusPublished - 1 May 1997
Externally publishedYes

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