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Job search in thick markets

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  • Di Addario, Sabrina

Abstract

I analyze empirically the effects of urban and industrial agglomeration on both search behavior and the efficiency of matching. The analysis is based on a unique panel data set from the Italian Labor Force Survey micro-data, covering 520 randomly drawn Local Labor Market Areas (66% of the total) over the four quarters of 2002. I compute transition probabilities from non-employment to employment by jointly estimating the probability of searching and the probability of finding a job conditional on having searched. I then test whether these are affected by market size, industrial variety and/or industry specialization. The main results indicate that market size and industry-specialization raise job seekers' chances of finding employment (conditional on having searched), while industrial variety is not significantly different from zero. Finally, the effect of agglomeration on non-employed individuals' search behavior cannot be significantly distinguished from zero.

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Bibliographic Info

Article provided by Elsevier in its journal Journal of Urban Economics.

Volume (Year): 69 (2011)
Issue (Month): 3 (May)
Pages: 303-318

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Handle: RePEc:eee:juecon:v:69:y:2011:i:3:p:303-318

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Web page: http://www.elsevier.com/locate/inca/622905

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Keywords: Labor market transitions Search intensity Urbanization Industry localization;

References

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Cited by:
  1. Falck, Oliver & Heblich, Stephan & Lameli, Alfred & Südekum, Jens, 2012. "Dialects, cultural identity, and economic exchange," Munich Reprints in Economics, University of Munich, Department of Economics 20568, University of Munich, Department of Economics.
  2. Monica Andini & Guido de Blasio & Gilles Duranton & William Strange, 2012. "Marshallian Labor Market Pooling: Evidence from Italy," ERSA conference papers ersa12p467, European Regional Science Association.
  3. Jaison R. Abel & Richard Deitz, 2012. "Agglomeration and job matching among college graduates," Staff Reports, Federal Reserve Bank of New York 587, Federal Reserve Bank of New York.
  4. Bleakley, Hoyt & Lin, Jeffrey, 2012. "Thick-market effects and churning in the labor market: Evidence from US cities," Journal of Urban Economics, Elsevier, vol. 72(2), pages 87-103.
  5. Gabriel, Stuart A. & Rosenthal, Stuart S., 2013. "Urbanization, agglomeration economies, and access to mortgage credit," Regional Science and Urban Economics, Elsevier, Elsevier, vol. 43(1), pages 42-50.
  6. Ay�a Akar�ay G�rb�z & Sezgin Polat & Mustafa Ulus, 2014. "In Limbo: Exploring Transition to Discouragement," The European Journal of Development Research, Palgrave Macmillan, Palgrave Macmillan, vol. 26(4), pages 527-551, September.
  7. Li, Jing, 2014. "The influence of state policy and proximity to medical services on health outcomes," Journal of Urban Economics, Elsevier, vol. 80(C), pages 97-109.
  8. Rosa Sanchis-Guarner, 2012. "Driving Up Wages: The Effects of Road Construction in Great Britain," SERC Discussion Papers, Spatial Economics Research Centre, LSE 0120, Spatial Economics Research Centre, LSE.

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