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The role of labor market structure in urban sprawl

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  • Boitier, Vincent

Abstract

In this article, I construct and calibrate a tractable search and matching model in which the residential density of workers is endogenous. Using this new framework, I demonstrate that labor market structure generates significant urban sprawl. I identify the fact that firms compensate workers for their spatial costs as the major cause of this large inefficiency. Next, I underline that optimality can be restored if the government implements an employee commuter-benefit program. Finally, I demonstrate that these results are robust to the inclusion of other features such as various job centers, wage settings, calibrations, preferences and social welfare functions.

Suggested Citation

  • Boitier, Vincent, 2018. "The role of labor market structure in urban sprawl," Regional Science and Urban Economics, Elsevier, vol. 73(C), pages 83-98.
  • Handle: RePEc:eee:regeco:v:73:y:2018:i:c:p:83-98
    DOI: 10.1016/j.regsciurbeco.2018.06.003
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    References listed on IDEAS

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    Cited by:

    1. Morkovina S.S. & Serebryakova N.A. & Sirotkina N.V. & Dorokhova N.V., 2018. "Labor Market Regulation Policy: Methodological Aspects," European Research Studies Journal, European Research Studies Journal, vol. 0(Special 2), pages 946-953.

    More about this item

    Keywords

    Urban sprawl; Search and spatial frictions; Efficiency;

    JEL classification:

    • 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
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns

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