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Search Activities, Cost of Living and Local Labor Markets

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  • Patacchini, Eleonora

    ()
    (University of Southampton)

  • Zenou, Yves

    ()
    (The Research Institute of Industrial Economics)

Abstract

A model is considered in which optimal search intensity is a result of a trade off between short run losses due to higher search costs (more interviews, commuting...) and long-run gains due to a higher chance of finding a job. We show that this optimal search intensity is higher in areas characterized by larger cost of living and/or higher labor market tightness. This model is then tested for England on sub-regional data. We estimate a spatial error model and we find that both the local cost of living and the local labor market tightness are found to have a positive and significant effect on unemployed average search intensity. These findings are consistent with the prediction of the theoretical model.

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Bibliographic Info

Paper provided by Research Institute of Industrial Economics in its series Working Paper Series with number 607.

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Length: 31 pages
Date of creation: 14 Nov 2003
Date of revision:
Handle: RePEc:hhs:iuiwop:0607

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Keywords: Job Matching; Search Intensities; Spatial Correlation;

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References

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  8. Wasmer, Etienne & Zenou, Yves, 2002. "Does City Structure Affect Job Search and Welfare?," Journal of Urban Economics, Elsevier, vol. 51(3), pages 515-541, May.
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  17. Sato, Yasuhiro, 2001. "Labor Heterogeneity in an Urban Labor Market," Journal of Urban Economics, Elsevier, vol. 50(2), pages 313-337, September.
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Cited by:
  1. Yannick L'Horty & Emmanuel Duguet & Loïc Du Parquet & Pascale Petit & Florent Sari, 2011. "The effect of place of residence on access to employment : a field experiment on qualified young job applicants in Ile-de-France," Working Papers halshs-00812113, HAL.
  2. Cécile Détang-Dessendre & Carl Gaigné, 2009. "Unemployment duration, city size, and the tightness of the labor market," Working Papers SMART - LERECO 09-04, INRA UMR SMART.
  3. Laurent Gobillon & Harris Selod, 2007. "The Effects of Segregation and Spatial Mismatch on Unemployment : Evidence from France," Working Papers 2007-04, Centre de Recherche en Economie et Statistique.
  4. Gobillon, Laurent & Magnac, Thierry & Selod, Harris, 2007. "The Effect of Location on Finding a Job in the Paris Region," CEPR Discussion Papers 6199, C.E.P.R. Discussion Papers.
  5. Laurent Gobillon & Harris Selod, 2007. "Les déterminants locaux du chômage en région parisienne," Économie et Prévision, Programme National Persée, vol. 180(4), pages 19-38.
  6. Zenou, Yves, 2009. "Search in cities," European Economic Review, Elsevier, vol. 53(6), pages 607-624, August.
  7. Gobillon, Laurent & Magnac, Thierry & Selod, Harris, 2007. "The Effect of Location on Finding a Job in the Greater Paris Area," IZA Discussion Papers 2848, Institute for the Study of Labor (IZA).
  8. Di Addario, Sabrina, 2011. "Job search in thick markets," Journal of Urban Economics, Elsevier, vol. 69(3), pages 303-318, May.

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