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On-the-job search in urban areas

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  • Kawata, Keisuke
  • Sato, Yasuhiro

Abstract

This study develops an on-the-job search model involving spatial structure. In this model, workers are either employed and commute frequently to a central business district (CBD) or unemployed and commute less frequently to the CBD in search of jobs. When an unemployed worker succeeds in off-the-job search, the quality of the job match is determined stochastically: a good match yields high productivity whereas a bad match yields low productivity. While a high-productivity worker does not seek a new job, a low-productivity worker decides whether to conduct on-the-job search, which would require additional commuting to the CBD. Analysis of this model demonstrates that in equilibrium, the relocation path of workers corresponds to their career path. Furthermore, welfare analysis demonstrates that such a spatial structure distorts firms’ decision regarding the posting of vacancies.

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Bibliographic Info

Article provided by Elsevier in its journal Regional Science and Urban Economics.

Volume (Year): 42 (2012)
Issue (Month): 4 ()
Pages: 715-726

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Handle: RePEc:eee:regeco:v:42:y:2012:i:4:p:715-726

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Web page: http://www.elsevier.com/locate/regec

Related research

Keywords: City structure; On-the-job search; Unemployment; Efficiency; Relocation path; Career path;

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References

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  18. Jos van Ommeren, 1998. "On-the-Job Search Behavior: The Importance of Commuting Time," Land Economics, University of Wisconsin Press, vol. 74(4), pages 526-540.
  19. Valerie Preston & Sara McLafferty, 1999. "articles: Spatial mismatch research in the 1990s: progress and potential," Papers in Regional Science, Springer, vol. 78(4), pages 387-402.
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Citations

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Cited by:
  1. Keisuke Kawata, 2013. "Work Hour Mismatch and On-the-job Search," IDEC DP2 Series 3-6, Hiroshima University, Graduate School for International Development and Cooperation (IDEC).
  2. Vincent Boitier, 2013. "Endogenous city size in urban search models: the case of high reallocation costs," ERSA conference papers ersa13p590, European Regional Science Association.
  3. Vincent Boitier, 2014. "Unemployment Dispersion and City Configurations: Beyond the Bid Rent Theory," Working Papers hal-00999559, HAL.

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