Agglomeration of low-productive entrepreneurs to large regions: a simple model

Rikard Forslid, Toshihiro Okubo

Research output: Contribution to journalArticlepeer-review

3 Citations (Scopus)


This paper develops a simple model of spatial sorting where the least productive entrepreneurs are drawn to the large core region. This is an unusual feature. The literature on spatial sorting typically shows how the most productive individuals and firms agglomerate to the core. However, our model is consistent with empirical evidence that reveals that large agglomerations also attract the low skilled.

Original languageEnglish
Pages (from-to)471-486
Number of pages16
JournalSpatial Economic Analysis
Issue number4
Publication statusPublished - 2021


  • agglomeration
  • heterogeneous firms
  • spatial sorting

ASJC Scopus subject areas

  • Geography, Planning and Development
  • Economics, Econometrics and Finance(all)
  • Statistics, Probability and Uncertainty
  • Earth and Planetary Sciences (miscellaneous)


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