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Labor Market Pooling, Outsourcing and Labor Contracts

Author

Listed:
  • Pierre M. Picard
  • David E. Wildasin

    (CREA, University of Luxembourg)

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.

Suggested Citation

  • Pierre M. Picard & David E. Wildasin, 2009. "Labor Market Pooling, Outsourcing and Labor Contracts," DEM Discussion Paper Series 09-05, Department of Economics at the University of Luxembourg.
    • Handle: RePEc:luc:wpaper:09-05
    as

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    File URL: http://wwwen.uni.lu/content/download/23993/291641/file/2009-05_Labor%20Market%20Pooling,%20Outsourcing%20and%20Labor%20Contracts.pdf
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    References listed on IDEAS

    as
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    More about this item

    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J65 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment Insurance; Severance Pay; Plant Closings

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