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Compensation for commuting in imperfect urban markets*

Jos van Ommeren () and Piet Rietveld

Papers in Regional Science, 2007, vol. 86, issue 2, 241-259

Abstract: Abstract. We develop an urban equilibrium job search model with employed and unemployed individuals where residential mobility of the unemployed is restricted. We assume a standard mono‐centric model (firms are located in one location), but allow for imperfect labour markets. In contrast to models with perfect labour markets, the model predicts that the employed are only partially compensated for commuting costs in the form of wages. As a result, rent gradients are less steep than predicted by standard urban theories that assume perfectly competitive labour markets. Abstract. Desarrollamos un modelo urbano de equilibrio de búsqueda de empleo con individuos empleados y desempleados donde se restringe la movilidad residencial de los desempleados. Asumimos un modelo monocéntrico estándar (las empresas se sitúan en una única ubicación), pero se permiten mercados de mano de obra imperfectos. En contraste con modelos con mercados de mano de obra perfectos, el modelo predice que los empleados reciben en forma de salario solamente una compensación parcial de los costes de trasladarse al puesto de trabajo. Como resultado, los gradientes en el alquiler son menos pronunciados de lo que predicen las teorías urbanas estándar que asumen mercados de mano de obra perfectamente competitivos.

Date: 2007
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Handle: RePEc:bla:presci:v:86:y:2007:i:2:p:241-259