January 2013
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130 Reads
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3,402 Citations
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January 2013
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130 Reads
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3,402 Citations
... The choice to reside in certain cities rather than fully autarkic locations stems from the localized aggregate increasing returns generated by the agglomeration of firms and labor. Among the key factors influencing productivity and the composition of workers within firms, complementarities play a central role, as highlighted by Marshall (1890). The presence of more productive co-workers enhances the performance of others, shaping decisions about where individuals choose to work and with whom. ...
January 2013