Thursday, September 02, 2010

An Empirical Test of the Division of Labour

Forthcoming in JUE:
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.
Haven't read it, but it is on the "when I have the time" pile of papers.

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