The Geography of Job Creation and Job Destruction

Moritz Kuhn, Iourii Manovskii and Xincheng Qiu

CRC TR 224 Discussion Paper Series from University of Bonn and University of Mannheim, Germany

Abstract: Spatial di erences in labor market performance are large and highly persistent. Using data from the United States, Germany, and the United Kingdom, we document striking similarities in spatial di erences in unemployment, vacancies, job nding, and job lling within each country. This robust set of facts guides and disciplines the development of a theory of local labor market performance. We nd that a spatial version of a Diamond- Mortensen-Pissarides model with endogenous separations and on-the-job search quanti- tatively accounts for all the documented empirical regularities. The model also quanti- tatively rationalizes why di erences in job-separation rates have primary importance in inducing di erences in unemployment across space while changes in the job- nding rate are the main driver in unemployment uctuations over the business cycle.

Keywords: Local Labor Markets; Unemployment; Vacancies; Search and Matching (search for similar items in EconPapers)
JEL-codes: E24 E32 J63 J64 R13 (search for similar items in EconPapers)
Pages: 66
Date: 2021-12
New Economics Papers: this item is included in nep-dge, nep-lab, nep-mac and nep-ure
References: Add references at CitEc
Citations: View citations in EconPapers (9)

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https://www.crctr224.de/research/discussion-papers/archive/dp321

Related works:
Working Paper: The Geography of Job Creation and Job Destruction (2024)
Working Paper: The Geography of Job Creation and Job Destruction (2021)
Working Paper: The Geography of Job Creation and Job Destruction (2021)
Working Paper: The Geography of Job Creation and Job Destruction (2021)
Working Paper: The Geography of Job Creation and Job Destruction (2021)
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Persistent link: https://EconPapers.repec.org/RePEc:bon:boncrc:crctr224_2021_321

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