Dual Labour Markets, Urban Unemployment and Multicentric Cities

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Dual Labour Markets, Urban Unemployment and Multicentric Cities

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Smith, Tony E
Zenou, Yves

Additional information is available for the following registered author(s):

Yves Zenou

Abstract

In this paper a two-sector model of urban unemployment is developed which focuses on the formation of a secondary sector under conditions in which a demand shock in the primary sector leads to a sharp increase in unemployment. The optimal location in the secondary sector is shown to be at the edge of the city, giving rise to a multicentric urban spatial structure. Within this spatial structure, we establish conditions under which the new labour market equilibrium involves not only a decrease in unemployment, but also an increase in net income for those unemployed. These results are extended to the case in which all unemployment benefits are financed by local taxation of firms. In this context, it is shown that when taxation discourages entry of a secondary sector, there may be profit incentives for the primary sector to subsidize the entry of a secondary sector.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 1566.

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Date of creation: Jan 1997
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Handle: RePEc:cpr:ceprdp:1566

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Article
- Smith, Tony E. & Zenou, Yves, 1997. "Dual Labor Markets, Urban Unemployment, and Multicentric Cities," Journal of Economic Theory, Elsevier, vol. 76(1), pages 185-214, September. [Downloadable!] (restricted)
Paper
- SMITHÊ, TonyÊE. & ZENOUÊ, Yves, 1996. "Dual Labor Markets, Urban Unemployment and Multicentric Cities," CORE Discussion Papers 1996018, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).

Find related papers by JEL classification:
J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
R14 - Urban, Rural, and Regional Economics - - General Regional Economics - - - Land Use Patterns

Cited by:
(explanations, Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.)

Wasmer, Etienne & Zenou, Yves, 1999. "Does Space Affect Search? A Theory of Local Unemployment," CEPR Discussion Papers 2157, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
Ross, Stephen L. & Zenou, Yves, 2004. "Shirking, Commuting and Labor Market Outcomes," Working Paper Series 627, Research Institute of Industrial Economics. [Downloadable!]
Other versions:
- Steven Ross & Yves Zenou, 2003. "Shirking, Commuting and Labor Market Outcomes," Working papers 2003-41, University of Connecticut, Department of Economics. [Downloadable!]
Wasmer, Etienne & Zenou, Yves, 2005. "Equilibrium Search Unemployment with Explicit Spatial Frictions," IZA Discussion Papers 1465, Institute for the Study of Labor (IZA). [Downloadable!]
Other versions:
- Wasmer, Etienne & Zenou, Yves, 2004. "Equilibrium Search Unemployment with Explicit Spatial Frictions," Working Paper Series 615, Research Institute of Industrial Economics. [Downloadable!]
- Wasmer, Etienne & Zenou, Yves, 2004. "Equilibrium Search Unemployment With Explicit Spatial Frictions," CEPR Discussion Papers 4743, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
- Wasmer, Etienne & Zenou, Yves, 2006. "Equilibrium search unemployment with explicit spatial frictions," Labour Economics, Elsevier, vol. 13(2), pages 143-165, April. [Downloadable!] (restricted)
Ross, Stephen L. & Zenou, Yves, 2008. "Are Shirking and Leisure Substitutable? An Empirical Test of Efficiency Wages based on Urban Economic Theory," CEPR Discussion Papers 6841, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
Other versions:
- Stephen L. Ross & Yves Zenou, 2006. "Are Shirking and Leisure Substitutable? An Empirical Test of Efficiency Wages Based on Urban Economic Theory," Working papers 2006-21, University of Connecticut, Department of Economics. [Downloadable!]
- Ross, Stephen L. & Zenou, Yves, 2007. "Are Shirking and Leisure Substitutable? An Empirical Test of Efficiency Wages based on Urban Economic Theory," CEPR Discussion Papers 6128, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
- Stephen L. Ross & Yves Zenou, 2007. "Are Shirking and Leisure Substitutable? An Empirical Test of Efficiency Wages Based on Urban Economic Theory," IZA Discussion Papers 2601, Institute for the Study of Labor (IZA). [Downloadable!]
- Ross, Stephen L. & Zenou, Yves, 2008. "Are Shirking and Leisure Substitutable? An Empirical Test of Efficiency Wages Based on Urban Economic Theory," Working Paper Series 753, Research Institute of Industrial Economics. [Downloadable!]
- Ross, Stephen L. & Zenou, Yves, 2008. "Are shirking and leisure substitutable? An empirical test of efficiency wages based on urban economic theory," Regional Science and Urban Economics, Elsevier, vol. 38(5), pages 498-517, September. [Downloadable!] (restricted)
Brueckner, Jan & Thisse, Jacques-François & Zenou, Yves, 2000. "Local Labour Markets, Job Matching and Urban Location," CEPR Discussion Papers 2612, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
Other versions:
- Jan K. Brueckner & Jacques-FranÁois Thisse & Yves Zenou, 2002. "Local Labor Markets, Job Matching, and Urban Location," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 43(1), pages 155-171, February. [Downloadable!] (restricted)
Laurent Gobillon & Harris Selod & Yves Zenou, 2005. "The mechanisms of spatial mismatch," Research Unit Working Papers 0510, Laboratoire d'Economie Appliquee, INRA. [Downloadable!]
Other versions:
- GOBILLON Laurent & SELOD Harris & ZENOU Yves, 2007. "The mechanisms of spatial mismatch," Research Unit Working Papers 0701, Laboratoire d'Economie Appliquee, INRA. [Downloadable!]
- Gobillon, Laurent & Selod, Harris & Zenou, Yves, 2005. "The mechanisms of spatial mismatch," CEPR Discussion Papers 5346, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
Monfort, Philippe & Ottaviano, Gianmarco Ireo Paolo, 2002. "Spatial Mismatch and Skill Accumulation," CEPR Discussion Papers 3324, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
Richard Arnott, 1997. "Economic Theory and the Spatial Mismatch Hypothesis," Boston College Working Papers in Economics 390., Boston College Department of Economics. [Downloadable!]
Brueckner, Jan & Zenou, Yves, 2000. "Space And Unemployment: The Labour-Market Effects Of Spatial Mismatch," CEPR Discussion Papers 2397, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
Other versions:
- Jan K. Brueckner & Yves Zenou, 2003. "Space and Unemployment: The Labor-Market Effects of Spatial Mismatch," Journal of Labor Economics, University of Chicago Press, vol. 21(1), pages 242-241, January. [Downloadable!]
Wauthy, Xavier & Zenou, Yves, 1997. "Efficiency Wages, Labor Heterogeneity and the Financing of the Training Cost," Discussion Papers (IRES - Institut de Recherches Economiques et Sociales) 1997022, Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES). [Downloadable!]
Other versions:
- WAUTHY, Xavier & ZENOU, Yves, 1997. "Efficiency wages, labor heterogeneity and the f”nancing of the training cost," CORE Discussion Papers 1997072, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
Frédéric Gannon & Yves Zenou, 1997. "Segregation and Labor Discrimination in Cities," Annales d'Economie et de Statistique, ADRES, issue 45, pages 11, Janvier-M. [Downloadable!]
Song, Yan & Zenou, Yves, 2008. "How Differences in Property Taxes within Cities Affect Urban Sprawl?," CEPR Discussion Papers 6842, C.E.P.R. Discussion Papers. [Downloadable!] (restricted)
Other versions:
- Song, Yan & Zenou, Yves, 2008. "How Differences in Property Taxes within Cities Affect Urban Sprawl?," Working Paper Series 754, Research Institute of Industrial Economics. [Downloadable!]

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