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Spatial Search, Migration and Regional Unemployment

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  • Molho, Ian
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    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. Copyright 2001 by The London School of Economics and Political Science

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    Bibliographic Info

    Article provided by London School of Economics and Political Science in its journal Economica.

    Volume (Year): 68 (2001)
    Issue (Month): 270 (May)
    Pages: 269-83

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    Handle: RePEc:bla:econom:v:68:y:2001:i:270:p:269-83

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    Cited by:
    1. Patrick Kline & Enrico Moretti, 2013. "Place Based Policies with Unemployment," American Economic Review, American Economic Association, vol. 103(3), pages 238-43, May.
    2. 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 and Osaka School of International Public Policy (OSIPP).
    3. Ana María Díaz, 2013. "The Employment Advantages of Skilled Urban Municipalities in Colombia," ENSAYOS SOBRE POLÍTICA ECONÓMICA, BANCO DE LA REPÚBLICA - ESPE.
    4. Van Ommeren, Jos & Rietveld, Piet, 2005. "The commuting time paradox," Journal of Urban Economics, Elsevier, vol. 58(3), pages 437-454, November.
    5. 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.
    6. repec:iab:iabzaf:v:37:i:4:p:393-408 is not listed on IDEAS
    7. Vanessa LUTGEN & Bruno VAN DER LINDEN, 2013. "Regional Equilibrium Unemployment Theory at the Age of the Internet," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 2013024, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES).
    8. Patrick Kline & Enrico Moretti, 2013. "People, Places and Public Policy: Some Simple Welfare Economics of Local Economic Development Programs," NBER Working Papers 19659, National Bureau of Economic Research, Inc.
    9. Ana María Díaz, 2011. "The Employment Advantages of Skilled Urban Areas," VNIVERSITAS ECONÓMICA 010087, UNIVERSIDAD JAVERIANA - BOGOTÁ.

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