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Spatial Search, Migration and Regional Unemployment

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  • Molho, Ian

Abstract

The dominant explanation of spatial unemployment in the literature assumes that workers must live in an area in order to be able to access job offers. This gives rise to "compensating variations" in local wages and unemployment. However, for many occupations search is clearly conducted over longer distances from a home base. In the model presented in this paper, migration and unemployment are analysed both when the optimal search field is local, as in the traditional model, and when search is conducted over longer distances. I compare equilibria in these two regimes, and discuss the implications for regional policy. Copyright 2001 by The London School of Economics and Political Science

Suggested Citation

  • Molho, Ian, 2001. "Spatial Search, Migration and Regional Unemployment," Economica, London School of Economics and Political Science, vol. 68(270), pages 269-283, May.
  • Handle: RePEc:bla:econom:v:68:y:2001:i:270:p:269-83
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    References listed on IDEAS

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    1. Bencivenga, Valerie R & Smith, Bruce D, 1997. "Unemployment, Migration, and Growth," Journal of Political Economy, University of Chicago Press, vol. 105(3), pages 582-608, June.
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    Cited by:

    1. Lutgen, Vanessa & Van der Linden, Bruno, 2015. "Regional equilibrium unemployment theory at the age of the Internet," Regional Science and Urban Economics, Elsevier, vol. 53(C), pages 50-67.
    2. Patrick Kline & Enrico Moretti, 2013. "Place Based Policies with Unemployment," American Economic Review, American Economic Association, vol. 103(3), pages 238-243, May.
    3. repec:iab:iabzaf:v:37:i:4:p:393-408 is not listed on IDEAS
    4. Lorenz B. Fischer & Michael Pfaffermayr, 2015. "The more the merrier? Migration and Convergence among European Regions," Working Papers 2015-08, Faculty of Economics and Statistics, University of Innsbruck.
    5. Patrick Kline & Enrico Moretti, 2014. "People, Places, and Public Policy: Some Simple Welfare Economics of Local Economic Development Programs," Annual Review of Economics, Annual Reviews, vol. 6(1), pages 629-662, August.
    6. Kawata, Keisuke & Nakajima, Kentaro & Sato, Yasuhiro, 2016. "Multi-region job search with moving costs," Regional Science and Urban Economics, Elsevier, vol. 61(C), pages 114-129.
    7. Ana María Díaz, 2013. "The Employment Advantages of Skilled Urban Municipalities in Colombia," ENSAYOS SOBRE POLÍTICA ECONÓMICA, BANCO DE LA REPÚBLICA - ESPE, vol. 31(70), pages 316-366, July.
    8. Keisuke Kawata & Kentaro Nakajima & Yasuhiro Sato, 2013. "Analyzing the impact of labor market integration," Discussion Papers in Economics and Business 13-28, Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP).
    9. Ana María Díaz, 2011. "The Employment Advantages of Skilled Urban Areas," VNIVERSITAS ECONÓMICA 010087, UNIVERSIDAD JAVERIANA - BOGOTÁ.
    10. Matthias Wrede, 2015. "Wages, Rents, Unemployment, And The Quality Of Life: A Consistent Theory-Based Measure," Journal of Regional Science, Wiley Blackwell, vol. 55(4), pages 609-625, September.
    11. Huber, Peter, 2004. "Inter-regional mobility in the accession countries : a comparison with EU15 member states," Zeitschrift für ArbeitsmarktForschung - Journal for Labour Market Research, Institut für Arbeitsmarkt- und Berufsforschung (IAB), Nürnberg [Institute for Employment Research, Nuremberg, Germany], vol. 37(4), pages 393-408.
    12. repec:bla:presci:v:95:y:2016:i:4:p:693-707 is not listed on IDEAS
    13. KAWATA Keisuke & NAKAJIMA Kentaro & SATO Yasuhiro, 2014. "Competitive Search with Moving Costs," Discussion papers 14052, Research Institute of Economy, Trade and Industry (RIETI).
    14. Van Ommeren, Jos & Rietveld, Piet, 2005. "The commuting time paradox," Journal of Urban Economics, Elsevier, vol. 58(3), pages 437-454, November.

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