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Unemployment duration, city size, and the tightness of the labor market

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  • Cécile Détang-Dessendre
  • Carl Gaigné

Abstract

This paper attempts to determine whether residential location affects unemployment duration. Our analysis is based on a spatial job search framework that shows the importance of dissociating the role of travel time from physical distance in unemployment duration. The contribution of our study also stems from the development of skill-specific accessibility measures that take into account the spatial distribution of labor supply and demand. Our results show that physical distance and competition among searchers must be controlled for in order to understand the significant role of job access (measured in terms of travel time) in unemployment duration. Second, improvements in access raise the probability that persons living in urban fringes and rural areas will become employed. Third, for workers living in large urban centers, the relationship between location and unemployment duration is insignificant.

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File URL: http://www.rennes.inra.fr/smart/Media/Working-papers/WP09-04
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Bibliographic Info

Paper provided by INRA UMR SMART in its series Working Papers SMART - LERECO with number 09-04.

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Date of creation: 2009
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Handle: RePEc:rae:wpaper:200904

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Keywords: unemployment duration; job accessibility; commuting time;

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  1. Claire Dujardin & Harris Selod & Isabelle Thomas, 2008. "Residential Segregation and Unemployment: The Case of Brussels," Urban Studies, Urban Studies Journal Limited, vol. 45(1), pages 89-113, January.
  2. Rouwendal, Jan, 1999. "Spatial job search and commuting distances," Regional Science and Urban Economics, Elsevier, vol. 29(4), pages 491-517, July.
  3. Fujita,Masahisa, 1989. "Urban Economic Theory," Cambridge Books, Cambridge University Press, number 9780521346627, April.
  4. David Card & Christoph M. Schmidt, 2003. "Symposium on “Second-generation immigrants and the transition to ethnic minorities”," Journal of Population Economics, Springer, vol. 16(4), pages 707-710, November.
  5. Weinberg, Bruce A., 2004. "Testing the spatial mismatch hypothesis using inter-city variations in industrial composition," Regional Science and Urban Economics, Elsevier, vol. 34(5), pages 505-532, September.
  6. Edward L. Glaeser & David C. Mare, 1994. "Cities and Skills," NBER Working Papers 4728, National Bureau of Economic Research, Inc.
  7. Ghazala Azmat & Maia Güell & Alan Manning, 2004. "Gender Gaps in Unemployment Rates in OECD Countries," CEP Discussion Papers dp0607, Centre for Economic Performance, LSE.
  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.
  9. van den Berg, Gerard J & Gorter, Cees, 1997. "Job Search and Commuting Time," Journal of Business & Economic Statistics, American Statistical Association, vol. 15(2), pages 269-81, April.
  10. 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.
  11. Alfonso Alba Ramirez & Jose Maria Arranz-Munoz & Fernando Munoz-Bullon, 2006. "Exits from unemployment: recall or new job," Business Economics Working Papers wb060301, Universidad Carlos III, Departamento de Economía de la Empresa.
  12. Patacchini, Eleonora & Zenou, Yves, 2006. "Search activities, cost of living and local labor markets," Regional Science and Urban Economics, Elsevier, vol. 36(2), pages 227-248, March.
  13. Thomas, Jonathan M., 1998. "Ethnic Variation in Commuting Propensity and Unemployment Spells: Some U.K. Evidence," Journal of Urban Economics, Elsevier, vol. 43(3), pages 385-400, May.
  14. Mattsson, Lars-Goran & Weibull, Jorgen W., 1981. "Competition and accessibility on a regional labour market," Regional Science and Urban Economics, Elsevier, vol. 11(4), pages 471-497, November.
  15. Mizuki Kawabata & Qing Shen, 2006. "Job accessibility as an indicator of auto-oriented urban structure: a comparison of Boston and Los Angeles with Tokyo," Environment and Planning B: Planning and Design, Pion Ltd, London, vol. 33(1), pages 115-130, January.
  16. Rouwendal, Jan, 1998. "Search Theory, Spatial Labor Markets, and Commuting," Journal of Urban Economics, Elsevier, vol. 43(1), pages 1-22, January.
  17. France Prioux, 2005. "Recent Demographic Developments in France," Population (english edition), Institut National d'Études Démographiques (INED), vol. 60(4), pages 371-414.
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  20. R Cervero & T Rood & B Appleyard, 1999. "Tracking accessibility: employment and housing opportunities in the San Francisco Bay Area," Environment and Planning A, Pion Ltd, London, vol. 31(7), pages 1259-1278, July.
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Cited by:
  1. Yip, Chi Man, 2011. "Size and The City: Productivity, Match Quality and Wage Inequality," MPRA Paper 31255, University Library of Munich, Germany.
  2. Rosa Sanchis-Guarner, 2012. "Driving Up Wages: The Effects of Road Construction in Great Britain," SERC Discussion Papers 0120, Spatial Economics Research Centre, LSE.
  3. Suárez Cano, Patricia & Mayor Fernández, Matías & Cueto Iglesias, Begoña, 2011. "How important is access to employment offices in Spain? An urban and non-urban perspective," Investigaciones Regionales, Asociación Española de Ciencia Regional, issue 21, pages 119-140.
  4. Matthieu Bunel & Elisabeth Tovar, 2012. "Local Job Accessibility Measurement: When the Model Makes the Results. Methodological Contribution and Empirical Benchmarking on the Paris Region," EconomiX Working Papers 2012-22, University of Paris West - Nanterre la Défense, EconomiX.
  5. Jordi Amorós, Catalina & Manjón Antolín, Miguel C., 2013. "The Determinants of Urban (Un)employment Duration: Evidence from Barcelona," Working Papers 2072/211799, Universitat Rovira i Virgili, Department of Economics.

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