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The Effect of Location on Finding a Job in the Paris Region

  • Gobillon, Laurent
  • Magnac, Thierry
  • Selod, Harris

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 municipality on an exhaustive dataset of all unemployment spells starting in the first semester of 1996. This model allows us to recover a survival function for each municipality that is purged of individual observed heterogeneity. We show that only 30% of the disparities in the survival rates relate to observed individual variables. Nearly 70% of the remaining disparities are captured by local indicators, mainly segregation indices.

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Paper provided by C.E.P.R. Discussion Papers in its series CEPR Discussion Papers with number 6199.

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Date of creation: Mar 2007
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Handle: RePEc:cpr:ceprdp:6199
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