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The Colocation Friction: Dual-Earner Job Search, Migration, and Labor Market Outcomes

Author

Listed:
  • Hanno Foerster

    (Boston College)

  • Robert Ulbricht

    (Boston College)

Abstract

We develop a spatial directed search model to study job search and migration among dual-earner households. Using the model, we decompose observed gender gaps into exogenous gender differences, which are amplified by a “colocation friction” that is unique to dual-earner households. Estimated for the U.S. labor market, the colocation friction reduces women’s long-term migration gains by 19% and discourages mobility, particularly among “power couples”. The rise of remote work mitigates this friction, cutting average earnings losses by up to 50%.

Suggested Citation

  • Hanno Foerster & Robert Ulbricht, 2025. "The Colocation Friction: Dual-Earner Job Search, Migration, and Labor Market Outcomes," Boston College Working Papers in Economics 1103, Boston College Department of Economics.
    • Handle: RePEc:boc:bocoec:1103
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    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
    • J16 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Gender; Non-labor Discrimination
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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