01645cas a2200241 a 4500 AALejournalIMF008624 230101c9999 xx r poo 0 0eng d 5.00 USD 9781451852721 1018-5941 BD-DhAAL BD-DhAAL International Monetary Fund. Trade and Industrial Location with Heterogeneous Labor. Washington, D.C. : International Monetary Fund, 2004. 1 online resource (26 pages) IMF Working Papers <strong>Off-Campus Access:</strong> No User ID or Password Required <strong>On-Campus Access:</strong> No User ID or Password Required Electronic access restricted to authorized BRAC University faculty, staff and students We show in the context of a new economic geography model that when labor is heterogenous trade liberalization may lead to industrial agglomeration and interregional trade. Labor heterogeneity gives local monopoly power to firms but also introduces variations in the quality of the job match. Matches are likely to be better when there are more firms and workers in the local market, giving rise to an agglomeration force that can offset the forces against trade costs and the erosion of monopoly power. We derive analytically a robust agglomeration equilibrium and illustrate its properties with numerical simulations. Mode of access: Internet IMF Working Papers; Working Paper ; No. 2004/103 Full text available on IMF http://elibrary.imf.org/view/journals/001/2004/103/001.2004.issue-103-en.xml IMF e-Library