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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 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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Paper provided by Institut d'Économie Industrielle (IDEI), Toulouse in its series IDEI Working Papers with number 433.

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Date of creation: Feb 2007
Date of revision: Mar 2009
Publication status: Published in Journal of Applied Econometrics, vol.�26, n°7, 2010, p.�1079-1112.
Handle: RePEc:ide:wpaper:6740
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