<p>I have provided one reference where Salop (1979) is applied to labor markets:</p>
<p>Staiger et. al (2010) 'Is There Monopsony in the Labor Market? Evidence from a Natural Experiment' Journal of Labor Economics.</p>
<p>You will find another application in section 3 - on matching - of the article</p>
<p>Puga (2004) Micro-foundations of urban agglomeration economies.</p>
<p>The basic motivation for the application of the Salop 1979 model is in this case the assumption of a skill-space. Labor is heterogeneous and different companies are more productive when hiring labor that matches their needs in skill space.</p>

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2021-12-13T21:03:44.337Z
2021-12-13T21:03:44.337Z
Jesper Hybel
<p>Can the <a href="https://www.jstor.org/stable/3003323" rel="nofollow noreferrer">Salop (1979)</a> model also be applied to labor markets or is there any reason why it should not be?</p>

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2021-12-13T20:27:33.970Z
Please provide a working link and a complete reference (because links tend to stop working). Also, the paper is from 1979 so a forward search on who has cited this paper in labor economics may provide you the best answer (the best way of showing that it can be applied to labor markets is probably doing it and given the age of the paper most likely someone will have if it was a good idea).
Jesper Hybel
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2021-12-13T20:30:33.023Z
Edited the link. Forward searching references with 4500 citations is a bit difficult, I searched for it independently though.
Papayapap
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2021-12-13T20:54:38.943Z
ok, well a search of Journal of Labor Economics on key word Salop 1979 results in this paper: Staiger et. al (2010) 'Is There Monopsony in the Labor Market? Evidence from a Natural Experiment' they say 'our empirical analysis is explicitly motivated by a model of geographic differentiation among ﬁrms, similar to Salop (1979)'.
Jesper Hybel
<labor-economics><industrial-organisation><theory>
Salop (1979) model for labor markets
Papayapap
# Salop (1979) model for labor markets

(Asked by: username_0 on 2021-12-13)

Can the [Salop (1979)](https://www.jstor.org/stable/3003323) model also be applied to labor markets or is there any reason why it should not be?

**Tags:** labor-economics, industrial-organisation, theory

> **Comments:**
> **username_1**: Please provide a working link and a complete reference (because links tend to stop working). Also, the paper is from 1979 so a forward search on who has cited this paper in labor economics may provide you the best answer (the best way of showing that it can be applied to labor markets is probably doing it and given the age of the paper most likely someone will have if it was a good idea).  
> **username_0**: Edited the link. Forward searching references with 4500 citations is a bit difficult, I searched for it independently though.  
> **username_1**: ok, well a search of Journal of Labor Economics on key word Salop 1979 results in this paper: Staiger et. al (2010) 'Is There Monopsony in the Labor Market? Evidence from a Natural Experiment' they say 'our empirical analysis is explicitly motivated by a model of geographic differentiation among ﬁrms, similar to Salop (1979)'.  

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## 1 answers

### Answer by username_1 on 2021-12-13. Score: 5 | Accepted answer

I have provided one reference where Salop (1979) is applied to labor markets:

Staiger et. al (2010) 'Is There Monopsony in the Labor Market? Evidence from a Natural Experiment' Journal of Labor Economics.

You will find another application in section 3 - on matching - of the article

Puga (2004) Micro-foundations of urban agglomeration economies.

The basic motivation for the application of the Salop 1979 model is in this case the assumption of a skill-space. Labor is heterogeneous and different companies are more productive when hiring labor that matches their needs in skill space.


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