Equilibrium Urban Unemployment
AbstractWe introduce a spatial dimension in a search equilibrium unemployment model. By assuming that workers'search efficiency decreases with the distance to the employment-center, two urban equilibrium configurations emerge: either the unemployed reside close to the employment-center or far away from it, depending on the values of the commuting costs and of the surplus associated with search, which depends on the labor market equilibrium. The labor market equilibrium itself depends crucially on these urban equilibria. We show that the unemployment level is lower in the first urban equilibrium.
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Bibliographic InfoPaper provided by DELTA (Ecole normale supérieure) in its series DELTA Working Papers with number 97-15.
Date of creation: 1997
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- Zenou, Yves, 1999.
"Urban Unemployment and City Formation. Theory and Policy Implications,"
662, Stockholm University, Institute for International Economic Studies.
- Zenou, Y., 1999. "Urban Unemployment and City Formation. Theory and Policy Implications," Papers 662, Stockholm - International Economic Studies.
- Richard Arnott, 1997. "Economic Theory and the Spatial Mismatch Hypothesis," Boston College Working Papers in Economics 390., Boston College Department of Economics.
- Yves Zenou & Jacques-François Thisse, 1997.
"Segmentation et marchés locaux du travail,"
Économie et Prévision,
Programme National Persée, vol. 131(5), pages 65-76.
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