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Spatial Mismatch, Search Effort and Urban Spatial Structure

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  • Smith, Tony E.

    ()
    (University of Pennsylvania)

  • Zenou, Yves

    ()
    (Stockholm University)

Abstract

The aim of this paper is to provide a new mechanism for the spatial mismatch hypothesis. Spatial mismatch can here be the result of optimizing behavior on the part of the labor market participants. In particular, the unemployed can choose low amounts of search and long-term unemployment if they reside far away from jobs. They choose voluntary not to relocate close to jobs because the short-run gains (low land rent and large housing consumption) are big enough compared to the long-run gains of residing near jobs (higher probability of finding a job).

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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 692.

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Length: 77 pages
Date of creation: Jan 2003
Date of revision:
Publication status: published in: Journal of Urban Economics, 2003, 54 (1), 129-156
Handle: RePEc:iza:izadps:dp692

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Keywords: urban segregation; search intensities; job matching; MTO;

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References

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  1. Gobillon, Laurent & Selod, Harris & Zenou, Yves, 2003. "Spatial Mismatch: From the Hypothesis to the Theories," IZA Discussion Papers 693, Institute for the Study of Labor (IZA).
  2. Smith, Tony E & Zenou, Yves, 2001. "A Discrete-Time Stochastic Model of Job Matching," CEPR Discussion Papers, C.E.P.R. Discussion Papers 3044, C.E.P.R. Discussion Papers.
  3. Coulson, N Edward & Laing, Derek & Wang, Ping, 2001. "Spatial Mismatch in Search Equilibrium," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 19(4), pages 949-72, October.
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  5. 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.
  6. Smith, Tony E & Zenou, Yves, 1997. "Dual Labour Markets, Urban Unemployment and Multicentric Cities," CEPR Discussion Papers, C.E.P.R. Discussion Papers 1566, C.E.P.R. Discussion Papers.
  7. Blanchard, Olivier Jean & Diamond, Peter A, 1994. "Ranking, Unemployment Duration, and Wages," Review of Economic Studies, Wiley Blackwell, Wiley Blackwell, vol. 61(3), pages 417-34, July.
  8. Ladd, Helen F & Ludwig, Jens, 1997. "Federal Housing Assistance, Residential Relocation, and Educational Opportunities: Evidence from Baltimore," American Economic Review, American Economic Association, American Economic Association, vol. 87(2), pages 272-77, May.
  9. Leslie E. Papke, 1991. "Tax Policy and Urban Development: Evidence From The Indiana Enterprise Zone Program," NBER Working Papers 3945, National Bureau of Economic Research, Inc.
  10. Hall, Robert E., 1979. "A theory of the natural unemployment rate and the duration of employment," Journal of Monetary Economics, Elsevier, Elsevier, vol. 5(2), pages 153-169, April.
  11. Barron, John M & Gilley, Otis W, 1981. "Job Search and Vacancy Contacts: Note," American Economic Review, American Economic Association, American Economic Association, vol. 71(4), pages 747-52, September.
  12. Robert S. Chirinko, 1981. "An Empirical Investigation of the Returns to Job Search," Discussion Papers, Northwestern University, Center for Mathematical Studies in Economics and Management Science 452, Northwestern University, Center for Mathematical Studies in Economics and Management Science.
  13. George A. Akerlof & Rachel E. Kranton, 2000. "Economics And Identity," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 115(3), pages 715-753, August.
  14. Brueckner, Jan K. & Martin, Richard W., 1997. "Spatial mismatch: An equilibrium analysis," Regional Science and Urban Economics, Elsevier, Elsevier, vol. 27(6), pages 693-714, November.
  15. Ihlanfeldt, Keith R. & Scafidi, Benjamin, 2002. "Black Self-Segregation as a Cause of Housing Segregation: Evidence from the Multi-City Study of Urban Inequality," Journal of Urban Economics, Elsevier, vol. 51(2), pages 366-390, March.
  16. Boarnet, Marlon G. & Bogart, William T., 1996. "Enterprise Zones and Employment: Evidence from New Jersey," Journal of Urban Economics, Elsevier, vol. 40(2), pages 198-215, September.
  17. Selod, Harris & Zenou, Yves, 2003. "Does City Structure Affect the Labor Market Outcomes of Black Workers?," IZA Discussion Papers 928, Institute for the Study of Labor (IZA).
  18. Battu, Harminder & Mwale, McDonald & Zenou, Yves, 2003. "Do Oppositional Identities Reduce Employment for Ethnic Minorities?," Working Paper Series, Research Institute of Industrial Economics 603, Research Institute of Industrial Economics.
  19. Brueckner, Jan & Zenou, Yves, 2000. "Space And Unemployment: The Labour-Market Effects Of Spatial Mismatch," CEPR Discussion Papers, C.E.P.R. Discussion Papers 2397, C.E.P.R. Discussion Papers.
  20. Mauer, David C. & Ott, Steven H., 1999. "On the Optimal Structure of Government Subsidies for Enterprise Zones and Other Locational Development Programs," Journal of Urban Economics, Elsevier, vol. 45(3), pages 421-450, May.
  21. Rogers, Cynthia L., 1997. "Job Search and Unemployment Duration: Implications for the Spatial Mismatch Hypothesis," Journal of Urban Economics, Elsevier, vol. 42(1), pages 109-132, July.
  22. Lawrence F. Katz & Jeffrey R. Kling & Jeffrey B. Liebman, 2001. "Moving To Opportunity In Boston: Early Results Of A Randomized Mobility Experiment," The Quarterly Journal of Economics, MIT Press, MIT Press, vol. 116(2), pages 607-654, May.
  23. Mortensen, Dale T & Pissarides, Christopher, 1999. "New Developments in Models of Search in the Labour Market," CEPR Discussion Papers, C.E.P.R. Discussion Papers 2053, C.E.P.R. Discussion Papers.
  24. Anthony E. Smith & Yves Zenou, 2002. "Online Appendix to "A Discrete-Time Stochastic Model of Job Matching"," Technical Appendices zenou02, Review of Economic Dynamics.
  25. Richard Arnott, 1997. "Economic Theory and the Spatial Mismatch Hypothesis," Boston College Working Papers in Economics, Boston College Department of Economics 390., Boston College Department of Economics.
  26. Pissarides, C A, 1979. "Job Matchings with State Employment Agencies and Random Search," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 89(356), pages 818-33, December.
  27. George A. Akerlof, 1997. "Social Distance and Social Decisions," Econometrica, Econometric Society, Econometric Society, vol. 65(5), pages 1005-1028, September.
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