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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 firms f 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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