On-the-job search in urban areas

Keisuke Kawata and Yasuhiro Sato ()
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Yasuhiro Sato: Graduate School of Economics, Osaka University

No 11-03, Discussion Papers in Economics and Business from Osaka University, Graduate School of Economics

Abstract: 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.

Keywords: City structure; On-the-job search; Unemployment; Efficiency; Relocation and career paths (search for similar items in EconPapers)
JEL-codes: J64 R14 R23 (search for similar items in EconPapers)
Pages: 24 pages
Date: 2011-02
New Economics Papers: this item is included in nep-cis, nep-dge, nep-lab and nep-ure
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http://www2.econ.osaka-u.ac.jp/library/global/dp/1103.pdf (application/pdf)

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Journal Article: On-the-job search in urban areas (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:osk:wpaper:1103

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