This paper formulates a partial search model in which unemployed
individuals simultaneously search for job and location of residence.
Most importantly, we show that, ceteris paribus, a decrease in current
place utility increases the transition rate into a new location of
residence and the transition rate into employment outside the local
labour market, but decreases the transition rate into local employment.
Thus, a decrease in current place utility decreases the overall
job-finding rate if the local reservation wage effect dominates.
We argue that dispersal policies on refugee immigrants are characterised
by low average values of current place utility. Hence, the
model predicts that dispersal policies increase the geographical mobility
rates of refugees and, for a sufficiently large local reservation wage
effect, decrease their job-finding rates.
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Paper provided by University of Aarhus, Aarhus School of Business, Department of Economics in its series Working Papers with number
05-1.
Find related papers by JEL classification: J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities and Races; Non-labor Discrimination J64 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Unemployment: Models, Duration, Incidence, and Job Search J68 - Labor and Demographic Economics - - Mobility, Unemployment, and Vacancies - - - Public Policy
References listed on IDEAS 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.:
Michael Svarer & Michael Rosholm & Jacob Roland Munch, 2003.
"Are Home Owners Really more Unemployed?,"
CAM Working Papers
2003-09, University of Copenhagen. Department of Economics. Centre for Applied Microeconometrics.
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