On-the-job search in urban areas
AbstractThis 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 InfoArticle provided by Elsevier in its journal Regional Science and Urban Economics.
Volume (Year): 42 (2012)
Issue (Month): 4 ()
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Web page: http://www.elsevier.com/locate/regec
City structure; On-the-job search; Unemployment; Efficiency; Relocation path; Career path;
Other versions of this item:
- D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information
- J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
- R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
- R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
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