Search in Cities
Abstract
We develop different spatial search models in which a land market is embedded into a standard search matching framework. The link between the land and the labour market is realized through the average search intensity of unemployed workers. We first develop a simple model where search intensity is exogenous. Because of this assumption, only one urban pattern emerges in which the employed reside close to jobs and the unemployed at the periphery of the city. We then extend this benchmark model by assuming that workers' search intensity negatively depends on their residential distance to jobs. This leads to two urban-land use patterns where the unemployed workers either reside close to or far away from jobs. Finally, we consider the case where the unemployed workers endogenously choose their search intensity and we show that they search less, the further away they reside from jobs. Apart from the two previous urban patterns, there is a third equilibrium that emerges, which has a core-periphery structure. In each model, we explore the labour market outcomes (job creation, unemployment and wages) of the different urban land use patterns.Download Info
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Bibliographic Info
Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 6197.Length:
Date of creation: Mar 2007
Date of revision:
Handle: RePEc:cpr:ceprdp:6197
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Related research
Keywords: job search; search intensity; spatial mismatch; urban land use;Other versions of this item:
- Zenou, Yves, 2009. "Search in cities," European Economic Review, Elsevier, vol. 53(6), pages 607-624, August.
- D83 - Microeconomics - - Information, Knowledge, and Uncertainty - - - Search, Learning, and Information
- J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, and Immigrants; Non-labor Discrimination
- J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
- R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
This paper has been announced in the following NEP Reports:
- NEP-ALL-2007-03-31 (All new papers)
- NEP-GEO-2007-03-31 (Economic Geography)
- NEP-LAB-2007-03-31 (Labour Economics)
- NEP-URE-2007-03-31 (Urban & Real Estate Economics)
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Citations
Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.Cited by:
- Zenou, Yves, 2009.
"Endogenous job destruction and job matching in cities,"
Journal of Urban Economics,
Elsevier, vol. 65(3), pages 323-336, May.
- Zenou, Yves, 2007. "Endogenous Job Destruction and Job Matching in Cities," IZA Discussion Papers 2695, Institute for the Study of Labor (IZA).
- Zenou, Yves, 2008. "Endogenous Job Destruction and Job Matching in Cities," Working Paper Series 752, Research Institute of Industrial Economics.
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