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Spatial Search, Migration and Regional Unemployment

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  • Ian Molho

Abstract

The dominant explanation of spatial unemployment in the literature assumes that workers must live in an area in order to be able to access job offers. This gives rise to ‘compensating variations’ in local wages and unemployment. However, for many occupations search is clearly conducted over longer distances from a home base. In the model presented in this paper, migration and unemployment are analysed both when the optimal search field is local, as in the traditional model, and when search is conducted over longer distances. I compare equilibria in these two regimes, and discuss the implications for regional policy.

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  • Ian Molho, 2001. "Spatial Search, Migration and Regional Unemployment," Economica, London School of Economics and Political Science, vol. 68(270), pages 269-283, May.
    • Handle: RePEc:bla:econom:v:68:y:2001:i:270:p:269-283
    DOI: 10.1111/1468-0335.00245
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    Cited by:

    1. Lutgen, Vanessa & Van der Linden, Bruno, 2015. "Regional equilibrium unemployment theory at the age of the Internet," Regional Science and Urban Economics, Elsevier, vol. 53(C), pages 50-67.
    2. Kawata, Keisuke & Nakajima, Kentaro & Sato, Yasuhiro, 2016. "Multi-region job search with moving costs," Regional Science and Urban Economics, Elsevier, vol. 61(C), pages 114-129.
    3. Wrede, Matthias, 2012. "Wages, rents, unemployment, and the quality of life," FAU Discussion Papers in Economics 01/2012 [rev.], Friedrich-Alexander University Erlangen-Nuremberg, Institute for Economics.
    4. Ge, Teng & Wu, Tao, 2020. "Search, migration, and social connections: Solving the migration puzzle to Beijing," China Economic Review, Elsevier, vol. 62(C).
    5. Ana María Díaz, 2011. "The Employment Advantages of Skilled Urban Areas," Vniversitas Económica 10087, Universidad Javeriana - Bogotá.
    6. Matthias Wrede, 2015. "Wages, Rents, Unemployment, And The Quality Of Life: A Consistent Theory‐Based Measure," Journal of Regional Science, Wiley Blackwell, vol. 55(4), pages 609-625, September.
    7. Riccardo Crescenzi & Luisa Gagliardi & Enrico Orru', 2016. "Learning mobility grants and skill (mis)matching in the labour market: The case of the ‘Master and Back’ Programme," Papers in Regional Science, Wiley Blackwell, vol. 95(4), pages 693-707, November.
    8. Piil Damm, Anna & Rosholm, Michael, 2005. "Employment Effects of Dispersal Policies on Refugee Immigrants: Theory," Working Papers 05-1, University of Aarhus, Aarhus School of Business, Department of Economics.
    9. Van Ommeren, Jos & Rietveld, Piet, 2005. "The commuting time paradox," Journal of Urban Economics, Elsevier, vol. 58(3), pages 437-454, November.
    10. Fischer, Lorenz Benedikt & Pfaffermayr, Michael, 2018. "The more the merrier? Migration and convergence among European regions," Regional Science and Urban Economics, Elsevier, vol. 72(C), pages 103-114.
    11. Teresa Casey & Christian Dustmann, 2008. "Intergenerational Transmission of Language Capital and Economic Outcomes," Journal of Human Resources, University of Wisconsin Press, vol. 43(3), pages 4660-4687.
    12. Huber, Peter, 2004. "Inter-regional mobility in the accession countries : a comparison with EU15 member states," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 37(4), pages 393-408.
    13. Damm, Anna Piil & Rosholm, Michael, 2003. "Employment Effects of Dispersal Policies on Refugee Immigrants, Part I: Theory," IZA Discussion Papers 924, Institute of Labor Economics (IZA).
    14. Keisuke Kawata & Kentaro Nakajima & Yasuhiro Sato, 2013. "Analyzing the impact of labor market integration," Discussion Papers in Economics and Business 13-28, Osaka University, Graduate School of Economics.
    15. Philippe Askenazy & Verónica Escudero, 2022. "Dimension géographique des inégalités d’accès à l’emploi," Post-Print halshs-03801734, HAL.
    16. Jorge González-Chapela & Raquel Ortega-Lapiedra, 2021. "Reform of the Personal Income Tax in Spain: Effects on Internal Mobility of the Unemployed," Journal of Family and Economic Issues, Springer, vol. 42(1), pages 166-181, March.
    17. Huber, Peter, 2004. "Inter-regional mobility in the accession countries : a comparison with EU15 member states," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 37(4), pages 393-408.
    18. KAWATA Keisuke & NAKAJIMA Kentaro & SATO Yasuhiro, 2014. "Competitive Search with Moving Costs," Discussion papers 14052, Research Institute of Economy, Trade and Industry (RIETI).

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