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The effect of location on finding a job in the Paris region

Author

Listed:
  • Laurent Gobillon
  • Thierry Magnac
  • Harris Selod

Abstract

There are large spatial disparities in unemployment durations across the 1,300 municipalities in the Paris region (Ile-de-France). In order to characterize these imbalances, we estimate a proportional hazard model stratified by municipalityon an exhaustive dataset of all unemployment spells starting in the first semester of 1996. This model allows us torecover a survival function for each municipality that is purged of individual observed heterogeneity. We show thatonly 30% of the disparities in the survival rates relate to observed individual variables. Nearly 70% of the remainingdisparities are captured by local indicators, mainly segregation indices.
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Suggested Citation

  • Laurent Gobillon & Thierry Magnac & Harris Selod, 2011. "The effect of location on finding a job in the Paris region," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 26(7), pages 1079-1112, November.
  • Handle: RePEc:wly:japmet:v:26:y:2011:i:7:p:1079-1112
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    References listed on IDEAS

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    More about this item

    JEL classification:

    • C41 - Mathematical and Quantitative Methods - - Econometric and Statistical Methods: Special Topics - - - Duration Analysis; Optimal Timing Strategies
    • 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

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