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Some Empirical Evidence of the Efficacy of Job Matching in Urban Labor Markets

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  • Jeffrey Yankow

Abstract

Theory predicts that workers in cities are more likely to engage in job search, ceteris paribus, due to market efficiencies associated with greater job density. However, if job search is more efficient in urban markets, then the quality of a given job match should also tend to be higher in cities, ceteris paribus. Employed workers living in cities might then be expected to search less than their nonurban counterparts. In this latter instance, it is not city residency itself that makes search less likely, but rather the positive correlation between city residency and job match quality. Using data from the National Longitudinal Survey of Youth 1979, this prediction is confirmed: The estimated coefficient on an indicator of urban residency is found to be near zero and statistically insignificant in models of employed search that omit proxies for job match quality. When job match proxies are included in the models, the estimated coefficient on urban residency becomes positive and highly significant. This result suggests that workers are not only more likely to engage in employed search in urban labor markets, but also tend to find more productive job matches in cities over time. Copyright International Atlantic Economic Society 2009

Suggested Citation

  • Jeffrey Yankow, 2009. "Some Empirical Evidence of the Efficacy of Job Matching in Urban Labor Markets," International Advances in Economic Research, Springer;International Atlantic Economic Society, vol. 15(2), pages 233-244, May.
  • Handle: RePEc:kap:iaecre:v:15:y:2009:i:2:p:233-244:10.1007/s11294-009-9206-y
    DOI: 10.1007/s11294-009-9206-y
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    Cited by:

    1. Adam Ayaita & Christian Grund & Lisa Pütz, 2022. "Job Placement via Private vs. Public Employment Agencies: Investigating Selection Effects and Job Match Quality in Germany," Schmalenbach Journal of Business Research, Springer, vol. 74(2), pages 137-162, June.
    2. Abel, Jaison R. & Deitz, Richard, 2015. "Agglomeration and job matching among college graduates," Regional Science and Urban Economics, Elsevier, vol. 51(C), pages 14-24.
    3. Marta Yánez Contreras & Marta Yánez Contreras, 2010. "El mercado laboral desde una perspectiva espacial," Apuntes del Cenes, Universidad Pedagógica y Tecnológica de Colombia, September.
    4. Marta Silva & Luis Filipe Martins & Helena Lopes, 2015. "Asymmetric labour market reforms and wage growth with fixed-term contracts: does learning about match quality matter?," Working Papers Series 2 15-04, ISCTE-IUL, Business Research Unit (BRU-IUL).
    5. Leknes, Stefan & Rattsø, Jørn & Stokke, Hildegunn E., 2022. "Assortative labor matching, city size, and the education level of workers," Regional Science and Urban Economics, Elsevier, vol. 96(C).

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    More about this item

    Keywords

    Job search; Job matching; Urban labor markets; Coordination hypothesis; J0; J62; R0; R23;
    All these keywords.

    JEL classification:

    • J0 - Labor and Demographic Economics - - General
    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • R0 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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