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On-the-job search and city structure

Author

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  • van Vuuren, Aico

    (Department of Economics, School of Business, Economics and Law, Göteborg University)

Abstract

This paper investigates an equilibrium search model in which search frictions are increas- ing with the distance to a city’s central business district, allowing for on-the-job search and endogenous wage formation and land allocation. The findings suggest that the decentralized market results in a more segregated outcome than may be socially desirable. The externality comes from the misguided incentives for the low-paid workers, who have a high preference for central locations in order to climb up the job ladder. Policies reducing the rental costs of unemployed workers for locations close to the central business district may potentially increase welfare.

Suggested Citation

  • van Vuuren, Aico, 2016. "On-the-job search and city structure," Working Papers in Economics 662, University of Gothenburg, Department of Economics.
  • Handle: RePEc:hhs:gunwpe:0662
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    File URL: http://hdl.handle.net/2077/44596
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    References listed on IDEAS

    as
    1. Zenou,Yves, 2009. "Urban Labor Economics," Cambridge Books, Cambridge University Press, number 9780521875387.
    2. Claire Dujardin & Harris Selod & Isabelle Thomas, 2008. "Residential Segregation and Unemployment: The Case of Brussels," Urban Studies, Urban Studies Journal Limited, vol. 45(1), pages 89-113, January.
    3. Zenou,Yves, 2009. "Urban Labor Economics," Cambridge Books, Cambridge University Press, number 9780521875387, October.
    4. Kawata, Keisuke & Sato, Yasuhiro, 2012. "On-the-job search in urban areas," Regional Science and Urban Economics, Elsevier, vol. 42(4), pages 715-726.
    5. Fabien Postel-Vinay & Jean-Marc Robin, 2002. "Equilibrium Wage Dispersion with Worker and Employer Heterogeneity," Econometrica, Econometric Society, vol. 70(6), pages 2295-2350, November.
    6. Guido Menzio & Shouyong Shi, 2011. "Efficient Search on the Job and the Business Cycle," Journal of Political Economy, University of Chicago Press, vol. 119(3), pages 468-510.
    7. Ioana Marinescu & Roland Rathelot, 2018. "Mismatch Unemployment and the Geography of Job Search," American Economic Journal: Macroeconomics, American Economic Association, vol. 10(3), pages 42-70, July.
    8. 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.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Search; city structure; urban economics;
    All these keywords.

    JEL classification:

    • J00 - Labor and Demographic Economics - - General - - - General
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns

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