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Spatial Mismatch, Search Effort and Urban Spatial Structure

  • Smith, Tony E
  • Zenou, Yves

The aim of this Paper is to provide a new mechanism for the spatial mismatch hypothesis. Spatial mismatch can here be the result of optimizing behaviour on the part of the labour market participants. In particular, the unemployed can choose low amounts of search and long-term unemployment if they reside far away from jobs. They choose voluntarily not to relocate close to jobs because the short-run gains (low land rent and large housing consumption) are big enough compared to the long-run gains of residing near jobs (higher probability of finding a job).

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 3731.

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Date of creation: Feb 2003
Date of revision:
Handle: RePEc:cpr:ceprdp:3731
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  1. Olivier Jean Blanchard & Peter Diamond, 1990. "Ranking, Unemployment Duration, and Wages," NBER Working Papers 3387, National Bureau of Economic Research, Inc.
  2. Richard Arnott, 1997. "Economic Theory and the Spatial Mismatch Hypothesis," Boston College Working Papers in Economics 390., Boston College Department of Economics.
  3. Seater, John J, 1979. "Job Search and Vacancy Contacts," American Economic Review, American Economic Association, vol. 69(3), pages 411-19, June.
  4. Barron, John M & Gilley, Otis W, 1981. "Job Search and Vacancy Contacts: Note," American Economic Review, American Economic Association, vol. 71(4), pages 747-52, September.
  5. Leslie E. Papke, 1991. "Tax Policy and Urban Development: Evidence From The Indiana Enterprise Zone Program," NBER Working Papers 3945, National Bureau of Economic Research, Inc.
  6. Robert E. Hall, 1978. "A Theory of the Natural Unemployment Rate and the Duration of Employment," NBER Working Papers 0251, National Bureau of Economic Research, Inc.
  7. Mortensen, Dale T. & Pissarides, Christopher A., 1999. "New developments in models of search in the labor market," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 39, pages 2567-2627 Elsevier.
  8. Lawrence F. Katz & Jeffrey R. Kling & Jeffrey B. Liebman, 2001. "Moving To Opportunity In Boston: Early Results Of A Randomized Mobility Experiment," The Quarterly Journal of Economics, MIT Press, vol. 116(2), pages 607-654, May.
  9. Chirinko, Robert S, 1982. "An Empirical Investigation of the Returns to Job Search," American Economic Review, American Economic Association, vol. 72(3), pages 498-501, June.
  10. Brueckner, Jan & Zenou, Yves, 2000. "Space And Unemployment: The Labour-Market Effects Of Spatial Mismatch," CEPR Discussion Papers 2397, C.E.P.R. Discussion Papers.
  11. Battu, Harminder & Mwale, MacDonald & Zenou, Yves, 2003. "Do Oppositional Identities Reduce Employment for Ethnic Minorities?," CEPR Discussion Papers 3819, C.E.P.R. Discussion Papers.
  12. repec:cup:cbooks:9780521346627 is not listed on IDEAS
  13. Pissarides, C A, 1979. "Job Matchings with State Employment Agencies and Random Search," Economic Journal, Royal Economic Society, vol. 89(356), pages 818-33, December.
  14. Smith, Tony E & Zenou, Yves, 1997. "Dual Labour Markets, Urban Unemployment and Multicentric Cities," CEPR Discussion Papers 1566, C.E.P.R. Discussion Papers.
  15. George A. Akerlof & Rachel E. Kranton, 2000. "Economics And Identity," The Quarterly Journal of Economics, MIT Press, vol. 115(3), pages 715-753, August.
  16. repec:cup:cbooks:9780521396455 is not listed on IDEAS
  17. Smith, Tony E & Zenou, Yves, 2001. "A Discrete-Time Stochastic Model of Job Matching," CEPR Discussion Papers 3044, C.E.P.R. Discussion Papers.
  18. Ladd, Helen F & Ludwig, Jens, 1997. "Federal Housing Assistance, Residential Relocation, and Educational Opportunities: Evidence from Baltimore," American Economic Review, American Economic Association, vol. 87(2), pages 272-77, May.
  19. Gobillon, Laurent & Selod, Harris & Zenou, Yves, 2003. "Spatial Mismatch: From the Hypothesis to the Theories," CEPR Discussion Papers 3740, C.E.P.R. Discussion Papers.
  20. Selod, Harris & Zenou, Yves, 2003. "Does City Structure Affect the Labor Market Outcomes of Black Workers?," IZA Discussion Papers 928, Institute for the Study of Labor (IZA).
  21. Anthony E. Smith & Yves Zenou, 2002. "Online Appendix to "A Discrete-Time Stochastic Model of Job Matching"," Technical Appendices zenou02, Review of Economic Dynamics.
  22. Rogers, Cynthia L., 1997. "Job Search and Unemployment Duration: Implications for the Spatial Mismatch Hypothesis," Journal of Urban Economics, Elsevier, vol. 42(1), pages 109-132, July.
  23. Ihlanfeldt, Keith R. & Scafidi, Benjamin, 2002. "Black Self-Segregation as a Cause of Housing Segregation: Evidence from the Multi-City Study of Urban Inequality," Journal of Urban Economics, Elsevier, vol. 51(2), pages 366-390, March.
  24. Wasmer, Etienne & Zenou, Yves, 2002. "Does City Structure Affect Job Search and Welfare?," Journal of Urban Economics, Elsevier, vol. 51(3), pages 515-541, May.
  25. Mauer, David C. & Ott, Steven H., 1999. "On the Optimal Structure of Government Subsidies for Enterprise Zones and Other Locational Development Programs," Journal of Urban Economics, Elsevier, vol. 45(3), pages 421-450, May.
  26. George A. Akerlof, 1997. "Social Distance and Social Decisions," Econometrica, Econometric Society, vol. 65(5), pages 1005-1028, September.
  27. Boarnet, Marlon G. & Bogart, William T., 1996. "Enterprise Zones and Employment: Evidence from New Jersey," Journal of Urban Economics, Elsevier, vol. 40(2), pages 198-215, September.
  28. Brueckner, Jan K. & Martin, Richard W., 1997. "Spatial mismatch: An equilibrium analysis," Regional Science and Urban Economics, Elsevier, vol. 27(6), pages 693-714, November.
  29. Coulson, N Edward & Laing, Derek & Wang, Ping, 2001. "Spatial Mismatch in Search Equilibrium," Journal of Labor Economics, University of Chicago Press, vol. 19(4), pages 949-72, October.
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