Endogenous Job Destruction and Job Matching in Cities

Yves Zenou

No 752, Working Paper Series from Research Institute of Industrial Economics

Abstract: We propose a spatial search-matching model where both job creation and job destruction are endogenous. Workers are ex ante identical but not ex post since their job can be hit by a technological shock, which decreases their productivity. They reside in a city and commuting to the job center involves both pecuniary and time costs. Thus, workers with high wages are willing to live closer to jobs to save on time commuting costs. We show that, in equilibrium, there is a one-to-one correspondence between the productivity space and the urban location space. Workers with high productivities and wages reside close to jobs, have low commuting costs and pay high land rents. We also show that higher commuting costs and higher unemployment benefits lead to more job destruction.

Keywords: Job Search; Commuting Costs; Wage Distribution; Urban Land Use (search for similar items in EconPapers)
JEL-codes: D83 J41 J64 R14 (search for similar items in EconPapers)
Pages: 44 pages
Date: 2008-06-19
New Economics Papers: this item is included in nep-dge, nep-geo, nep-lab and nep-ure
References: Add references at CitEc
Citations:

Downloads: (external link)
https://www.ifn.se/wfiles/wp/wp753.pdf (application/pdf)

Related works:
Journal Article: Endogenous job destruction and job matching in cities (2009)
Working Paper: Endogenous Job Destruction and Job Matching in Cities (2007)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:hhs:iuiwop:0752

Access Statistics for this paper

More papers in Working Paper Series from Research Institute of Industrial Economics Research Institute of Industrial Economics, Box 55665, SE-102 15 Stockholm, Sweden. Contact information at EDIRC.
Bibliographic data for series maintained by Elisabeth Gustafsson ().