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Externalities in the matching of workers and firms in Britain

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  • Simon Burgess
  • Stefan Profit
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    Abstract

    We provide empirical evidence on the nature of spatial externalities in a matching model for the UK. We use a monthly panel of outflows, unemployment and vacancy stocks data from the registers at Jobcentres in the UK; these are mapped on to travel-to-work areas. We find evidence of significant spill-over effects that are generally in line with the predictions of theory. For example, we find that conditional on local labour market conditions, high unemployment levels in neighbouring areas raise the number of local filled vacancies but lower the local outflow from unemployment.

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    File URL: http://eprints.lse.ac.uk/20130/
    File Function: Open access version.
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    Bibliographic Info

    Paper provided by London School of Economics and Political Science, LSE Library in its series LSE Research Online Documents on Economics with number 20130.

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    Length: 32 pages
    Date of creation: Apr 2001
    Date of revision:
    Handle: RePEc:ehl:lserod:20130

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    Web page: http://www.lse.ac.uk/
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    Related research

    Keywords: matching model; externalities; spatial dependence; unemployment outflows;

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    Cited by:
    1. Camille Landais & Pascal Michaillat & Emmanuel Saez, 2013. "Optimal Unemployment Insurance over the Business Cycle," Discussion Papers 1303, Centre for Macroeconomics (CFM).
    2. René Fahr & Uwe Sunde, 2002. "On the Effects of Career Choice: Matching Efficiency of Different Occupations and Education Levels," 10th International Conference on Panel Data, Berlin, July 5-6, 2002 B1-1, International Conferences on Panel Data.
    3. Manning, Alan & Petrongolo, Barbara, 2011. "How Local Are Labor Markets? Evidence from a Spatial Job Search Model," IZA Discussion Papers 6178, Institute for the Study of Labor (IZA).
    4. Sarantis LOLOS & Evangelia PAPAPETROU, 2012. "Unemployment disparities and persistence Assessing the evidence from Greek regions, 1981-2008," Regional and Sectoral Economic Studies, Euro-American Association of Economic Development, vol. 12(1), pages 69-90.
    5. Alessandra Fogli & Enoch Hill & Fabrizio Perri, 2012. "The Geography of the Great Recession," NBER Working Papers 18447, National Bureau of Economic Research, Inc.
    6. Fahr, René & Sunde, Uwe, 2001. "Disaggregate Matching Functions," IZA Discussion Papers 335, Institute for the Study of Labor (IZA).

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