IDEAS home Printed from https://ideas.repec.org/a/aea/aejmac/v10y2018i3p42-70.html
   My bibliography  Save this article

Mismatch Unemployment and the Geography of Job Search

Author

Listed:
  • Ioana Marinescu
  • Roland Rathelot

Abstract

Could we significantly reduce US unemployment by helping job seekers move closer to jobs? Using data from the leading employment board CareerBuilder.com, we show that, indeed, workers dislike applying to distant jobs: job seekers are 35 percent less likely to apply to a job 10 miles (mi.) away from their zip code of residence. However, because job seekers are close enough to vacancies on average, this distaste for distance is fairly inconsequential: our search and matching model predicts that relocating job seekers to minimize unemployment would decrease unemployment by only 5.3 percent. Geographic mismatch is thus a minor driver of aggregate unemployment.

Suggested Citation

  • Ioana Marinescu & Roland Rathelot, 2018. "Mismatch Unemployment and the Geography of Job Search," American Economic Journal: Macroeconomics, American Economic Association, vol. 10(3), pages 42-70, July.
  • Handle: RePEc:aea:aejmac:v:10:y:2018:i:3:p:42-70
    Note: DOI: 10.1257/mac.20160312
    as

    Download full text from publisher

    File URL: https://www.aeaweb.org/doi/10.1257/mac.20160312
    Download Restriction: no

    File URL: https://www.aeaweb.org/articles/attachments?retrieve=ytj-1mji6Ckupr_MvKzVJ1vqv6XzOT4Y
    Download Restriction: no

    File URL: https://www.aeaweb.org/articles/attachments?retrieve=JDO6ThWKDHryqrirp_9xVU-yRtQJIUMG
    Download Restriction: no

    File URL: https://www.aeaweb.org/articles/attachments?retrieve=-8BKC3VRAtC6PXYn5g1llSFKxyeI1t_j
    Download Restriction: Access to full text is restricted to AEA members and institutional subscribers.

    Other versions of this item:

    References listed on IDEAS

    as
    1. Olof Åslund & John Östh & Yves Zenou, 2010. "How important is access to jobs? Old question--improved answer," Journal of Economic Geography, Oxford University Press, vol. 10(3), pages 389-422, May.
    2. Bruno Crépon & Esther Duflo & Marc Gurgand & Roland Rathelot & Philippe Zamora, 2013. "Do Labor Market Policies have Displacement Effects? Evidence from a Clustered Randomized Experiment," The Quarterly Journal of Economics, Oxford University Press, vol. 128(2), pages 531-580.
    3. Herz, Benedikt & van Rens, Thijs, 2015. "Accounting for Mismatch Employment," Economic Research Papers 270222, University of Warwick - Department of Economics.
    4. Gadi Barlevy, 2011. "Evaluating the role of labor market mismatch in rising unemployment," Economic Perspectives, Federal Reserve Bank of Chicago, issue Q III, pages 82-96.
    5. Regis Barnichon & Andrew Figura, 2015. "Labor Market Heterogeneity and the Aggregate Matching Function," American Economic Journal: Macroeconomics, American Economic Association, vol. 7(4), pages 222-249, October.
    6. Abigail Wozniak, 2010. "Are College Graduates More Responsive to Distant Labor Market Opportunities?," Journal of Human Resources, University of Wisconsin Press, vol. 45(4), pages 944-970.
    7. Henry S. Farber, 2012. "Unemployment in the Great Recession: Did the Housing Market Crisis Prevent the Unemployed from Moving to Take Jobs?," American Economic Review, American Economic Association, vol. 102(3), pages 520-525, May.
    8. repec:ags:stataj:163398 is not listed on IDEAS
    9. Guimarães, Paulo & Portugal, Pedro, 2010. "A simple feasible procedure to fit models with high-dimensional fixed effects," Stata Journal, StataCorp LP, vol. 10(4), pages 1-22.
    10. repec:wsi:wschap:9789814719902_0007 is not listed on IDEAS
    11. Marinescu, Ioana E. & Wolthoff, Ronald P., 2015. "Opening the Black Box of the Matching Function: The Power of Words," IZA Discussion Papers 9071, Institute for the Study of Labor (IZA).
    12. Matias Busso & Jesse Gregory & Patrick Kline, 2013. "Assessing the Incidence and Efficiency of a Prominent Place Based Policy," American Economic Review, American Economic Association, vol. 103(2), pages 897-947, April.
    13. Gianmarco I.P. Ottaviano & Giovanni Peri, 2016. "The economic value of cultural diversity: evidence from US cities," World Scientific Book Chapters,in: The Economics of International Migration, chapter 7, pages 229-264 World Scientific Publishing Co. Pte. Ltd..
    14. Michael Amior & Alan Manning, 2018. "The Persistence of Local Joblessness," American Economic Review, American Economic Association, vol. 108(7), pages 1942-1970, July.
    15. Maxim Poletaev & Chris Robinson, 2008. "Human Capital Specificity: Evidence from the Dictionary of Occupational Titles and Displaced Worker Surveys, 1984-2000," Journal of Labor Economics, University of Chicago Press, vol. 26(3), pages 387-420, July.
    16. Rachel M. Friedberg & Jennifer Hunt, 1995. "The Impact of Immigrants on Host Country Wages, Employment and Growth," Journal of Economic Perspectives, American Economic Association, vol. 9(2), pages 23-44, Spring.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Marinescu, Ioana, 2017. "The general equilibrium impacts of unemployment insurance: Evidence from a large online job board," Journal of Public Economics, Elsevier, vol. 150(C), pages 14-29.
    2. Belot, Michele & Kircher, Philipp & Muller, Paul, 2015. "Providing Advice to Job Seekers at Low Cost: An Experimental Study on On-Line Advice," Working Papers in Economics 637, University of Gothenburg, Department of Economics.
    3. Aico van Vuuren, 2015. "On-the-Job Search and City Structure," Tinbergen Institute Discussion Papers 15-016/VI, Tinbergen Institute.
    4. Marinescu, Ioana E. & Wolthoff, Ronald P., 2015. "Opening the Black Box of the Matching Function: The Power of Words," IZA Discussion Papers 9071, Institute for the Study of Labor (IZA).
    5. Philipp Kircher & Paul Muller & Michele Belot, 2017. "How Wage Announcements Affect Job Search Behaviour - A Field Experimental Investigation," 2017 Meeting Papers 722, Society for Economic Dynamics.
    6. Vera Brenčič, 2016. "The impact of Craigslist’s entry on competing employment websites," IZA Journal of Labor Economics, Springer;Forschungsinstitut zur Zukunft der Arbeit GmbH (IZA), vol. 5(1), pages 1-15, December.
    7. repec:red:issued:18-6 is not listed on IDEAS
    8. Faberman, R. Jason & Kudlyak, Marianna, 2016. "What Does Online Job Search Tell Us about the Labor Market?," Economic Perspectives, Federal Reserve Bank of Chicago, issue 1, pages 1-15.
    9. Roberto Galbiati & Aurélie Ouss & Arnaud Philippe, 2015. "Jobs, News and Re-offending after Incarceration," Sciences Po publications 41, Sciences Po.
    10. Herz, Benedikt & van Rens, Thijs, 2015. "Accounting for Mismatch Employment," Economic Research Papers 270222, University of Warwick - Department of Economics.
    11. Tara Sinclair & Mariano Mamertino, 2016. "Online Job Search and Migration Intentions Across EU Member States," Working Papers 2016-5, The George Washington University, Institute for International Economic Policy.
    12. Kevin Rinz, 2018. "Labor Market Concentration, Earnings Inequality, and Earnings Mobility," CARRA Working Papers 2018-10, Center for Economic Studies, U.S. Census Bureau.
    13. Vincent Boucher & Marion Gousse, 2019. "Wage Dynamics and Peer Referrals," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 31, pages 1-23, January.
    14. Claudia Macaluso, 2017. "Skill Remoteness and Post-layoff Labor Market Outcomes," 2017 Meeting Papers 569, Society for Economic Dynamics.
    15. Ronald Wolthoff, 2018. "Applications and Interviews: Firms’ Recruiting Decisions in a Frictional Labour Market," Review of Economic Studies, Oxford University Press, vol. 85(2), pages 1314-1351.
    16. Parkhomenko, Andrii, 2016. "Opportunity to Move: Macroeconomic Effects of Relocation Subsidies," MPRA Paper 75256, University Library of Munich, Germany.
    17. Vincent Boucher & Marion Gousse, 2019. "Wage Dynamics and Peer Referrals," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 31, pages 1-23, January.
    18. Banfi, Stefano & Choi, Sekyu & Villena-Roldán, Benjamin, 2019. "Deconstructing Job Search Behavior," MPRA Paper 92482, University Library of Munich, Germany.

    More about this item

    JEL classification:

    • E24 - Macroeconomics and Monetary Economics - - Consumption, Saving, Production, Employment, and Investment - - - Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
    • J41 - Labor and Demographic Economics - - Particular Labor Markets - - - Labor Contracts
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J63 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Turnover; Vacancies; Layoffs
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

    Lists

    This item is featured on the following reading lists or Wikipedia pages:
    1. Mismatch Unemployment and the Geography of Job Search (AEJ:MA 2018) in ReplicationWiki

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:aea:aejmac:v:10:y:2018:i:3:p:42-70. See general information about how to correct material in RePEc.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Michael P. Albert). General contact details of provider: http://edirc.repec.org/data/aeaaaea.html .

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service hosted by the Research Division of the Federal Reserve Bank of St. Louis . RePEc uses bibliographic data supplied by the respective publishers.