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Unemployment, commuting, and search intensity

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  • Wrede, Matthias

Abstract

Employing a standard matching unemployment model extended by within-labor-market-regions commuting, this paper analyzes the tradeoff between commuting costs and unemployment. Depending on whether commuters are able to bargain for fringe benefits, search may or may not be biased towards distant workplaces and less productive centers. As a consequence, unemployment benefits should be tied to search in high productivity regions. Using German county data, the paper tests some positive predictions that emerge from of the model. In particular, it confirms that increasing labor market tightness reduces the willingness to out-commute.

Suggested Citation

  • Wrede, Matthias, 2011. "Unemployment, commuting, and search intensity," FAU Discussion Papers in Economics 12/2011, Friedrich-Alexander University Erlangen-Nuremberg, Institute for Economics.
    • Handle: RePEc:zbw:iwqwdp:122011
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    References listed on IDEAS

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    Cited by:

    1. Li, Tiebei & Dodson, Jago & Goldie, Xavier, 2021. "Urban structure, commuting burden, and employment status of labour forces in an Australian city," Journal of Transport Geography, Elsevier, vol. 93(C).

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    More about this item

    Keywords

    unemployment; matching; commuting; search; labor market policy;
    All these keywords.

    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence

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