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On-the-job search in urban areas

  • Keisuke Kawata


    (Graduate School of Economics, Osaka University)

  • Yasuhiro Sato


    (Graduate School of Economics, Osaka University)

This study develops an on-the-job search model involving spatial structure. In this model, workers are either employed and commuting frequently to a central business district (CBD) or unemployed and commuting less frequently to the CBD to search for a job. When an unemployed worker succeeds in off-the-job search, the quality of the job match is determined stochastically: a good match yields high-productivity whereas a bad match yields low-productivity. Although a high-productivity worker does not search for a new job, a lowproductivity worker decides whether to conduct an on-the-job search, which would require additional commuting to the CBD. Analysis of this model demonstrates that in equilibrium, the relocation path of workers corresponds to their career path, while welfare analysis demonstrates that such a spatial structure distorts firmsf decision regarding the posting of vacancies.

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Paper provided by Osaka University, Graduate School of Economics and Osaka School of International Public Policy (OSIPP) in its series Discussion Papers in Economics and Business with number 11-03.

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Length: 24 pages
Date of creation: Feb 2011
Date of revision:
Handle: RePEc:osk:wpaper:1103
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  3. Zenou, Yves, 2007. "Search, Wage Posting and Urban Spatial Structure," CEPR Discussion Papers 6286, C.E.P.R. Discussion Papers.
  4. Valerie Preston & Sara McLafferty, 1999. "articles: Spatial mismatch research in the 1990s: progress and potential," Papers in Regional Science, Springer, vol. 78(4), pages 387-402.
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  6. Pieter A. Gautier & Coen N. Teulings & Aico Van Vuuren, 2010. "On-the-Job Search, Mismatch and Efficiency ," Review of Economic Studies, Oxford University Press, vol. 77(1), pages 245-272.
  7. Smith, Tony E. & Zenou, Yves, 2003. "Spatial Mismatch, Search Effort and Urban Spatial Structure," IZA Discussion Papers 692, Institute for the Study of Labor (IZA).
  8. Zenou,Yves, 2009. "Urban Labor Economics," Cambridge Books, Cambridge University Press, number 9780521698221.
  9. Jos van Ommeren, 1998. "On-the-Job Search Behavior: The Importance of Commuting Time," Land Economics, University of Wisconsin Press, vol. 74(4), pages 526-540.
  10. Sato, Yasuhiro, 2001. "Labor Heterogeneity in an Urban Labor Market," Journal of Urban Economics, Elsevier, vol. 50(2), pages 313-337, September.
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  14. G R Crampton, 1997. "Labour-market search and urban residential structure," Environment and Planning A, Pion Ltd, London, vol. 29(6), pages 989-1002, June.
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  16. Zenou, Yves, 2009. "Endogenous job destruction and job matching in cities," Journal of Urban Economics, Elsevier, vol. 65(3), pages 323-336, May.
  17. McCann, Philip, 2001. "Urban and Regional Economics," OUP Catalogue, Oxford University Press, number 9780198776451, July.
  18. Pietro Garibaldi & Espen R. Moen, 2010. "Job to Job Movements in a Simple Search Model," American Economic Review, American Economic Association, vol. 100(2), pages 343-47, May.
  19. Hosios, Arthur J, 1990. "On the Efficiency of Matching and Related Models of Search and Unemployment," Review of Economic Studies, Wiley Blackwell, vol. 57(2), pages 279-98, April.
  20. Rouwendal, Jan, 1998. "Search Theory, Spatial Labor Markets, and Commuting," Journal of Urban Economics, Elsevier, vol. 43(1), pages 1-22, January.
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  22. Shimer, Robert, 2006. "On-the-job search and strategic bargaining," European Economic Review, Elsevier, vol. 50(4), pages 811-830, May.
  23. Sato, Yasuhiro, 2004. "City structure, search, and workers' job acceptance behavior," Journal of Urban Economics, Elsevier, vol. 55(2), pages 350-370, March.
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