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Why Are Low-Skilled Workers Less Mobile? The Role of Mobility Costs and Spatial Frictions

Author

Listed:
  • Benoit Schmutz
  • Modibo Sidibé
  • Elie Vidal-Naquet

Abstract

Workers' propensity to migrate to another local labor market varies a lot by occupation. We use the model developed by Schmutz and Sidibé (2019) to quantify the impact of mobility costs and search frictions on this mobility gap. We estimate the model on a matched employer-employee panel dataset describing labor market transitions within and between the 30 largest French cities for two groups at both ends of the occupational spectrum and find that: (i) mobility costs are very comparable in the two groups, so they are three times higher for blue-collar workers relative to their respective expected income; (ii) Depending on employment status, spatial frictions are between 2 and 3 times higher for blue-collar workers; (iii) Moving subsidies have little (and possibly negative) impact on the mobility gap, contrary to policies targeting spatial frictions; (iv) Mobility-enhancing policies have almost no impact on the unemployment gap.

Suggested Citation

  • Benoit Schmutz & Modibo Sidibé & Elie Vidal-Naquet, 2021. "Why Are Low-Skilled Workers Less Mobile? The Role of Mobility Costs and Spatial Frictions," Annals of Economics and Statistics, GENES, issue 142, pages 283-304.
    • Handle: RePEc:adr:anecst:y:2021:i:142:p:283-304
    DOI: https://doi.org/10.15609/annaeconstat2009.142.0283
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    Cited by:

    1. Gaelle Aymeric & Emmanuelle Lavaine & Brice Magdalou, 2025. "Parental environment and student achievement: Does a Matthew effect exist?," Papers 2510.18481, arXiv.org.
    2. Rich Ryan, 2024. "Unemployment volatility: When workers pay costs upon accepting jobs," International Journal of Economic Theory, The International Society for Economic Theory, vol. 20(3), pages 303-333, September.
    3. Taryn Eames, 2024. "Taryn versus Taryn (she/her) versus Taryn (they/them): A Field Experiment on Pronoun Disclosure and Hiring Discrimination," Working Papers tecipa-766, University of Toronto, Department of Economics.

    More about this item

    Keywords

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    JEL classification:

    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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