JOB MATCHING AND SPATIAL COMPETITION IN THE LABOR-MARKET

In this article, we propose a spatial competition model where firms compete in the labor market in order to attract workers with the same level of general human capital but different degree of specialisation according to the firm requirement. We develop two approaches, one where the cost of the specific training is totally financed by the workers, the other where it is shared by both the firm and the workers. In each case, we show the existence of a unique long run wage and we study its properties.