Commuters, residents and job competition
AbstractThe mobility of labor across borders is an issue of increasing importance. The goal of this paper is to propose a simple model, in the spirit of the search unemployment literature, to better understand the effect of foreign commuters on domestic unemployment. We analytically show that the decision to commute depends on workers' productivity and employment perspectives. Under certain conditions, increasing competition from cross-border commuters may even generate positive externalities on domestic unemployment. The model is then applied to understand the case of Luxembourg where, in recent years, domestic unemployment has risen at the same time that the share of commuters increased.
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Bibliographic InfoArticle provided by Elsevier in its journal Regional Science and Urban Economics.
Volume (Year): 38 (2008)
Issue (Month): 6 (November)
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Web page: http://www.elsevier.com/locate/regec
J61 J64 R23 Job competition Commuters Unemployment;
Find related papers by JEL classification:
- J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
- J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
- R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
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