Is the Division of Labour Limited by the Extent of the Market? Evidence From French Cities

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Real Estate Papers
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division of labour
specialisation
extent of the market
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Duranton, Gilles
Jayet, Hubert
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This paper provides supportive evidence to the notion that the division of labour is limited by the extent of the (local) market. We first propose a theoretical model. Its main prediction is that scarce specialists occupations are over-represented in large cities. Using census data for French cities, we find strong empirical support for this prediction.

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2011-01-01
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Journal of Urban Economics
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