 On-the-job search in urban areasKeisuke Kawata and Yasuhiro Sato Regional Science and Urban Economics, 2012, vol. 42, issue 4, 715-726 Abstract: This study develops an on-the-job search model involving spatial structure. In this model, workers are either employed and commute frequently to a central business district (CBD) or unemployed and commute less frequently to the CBD in search of jobs. 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. While a high-productivity worker does not seek a new job, a low-productivity worker decides whether to conduct 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. Furthermore, welfare analysis demonstrates that such a spatial structure distorts firms’ decision regarding the posting of vacancies. Keywords: City structure; On-the-job search; Unemployment; Efficiency; Relocation path; Career path (search for similar items in EconPapers) Downloads: (external link) Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:eee:regeco:v:42:y:2012:i:4:p:715-726 DOI: 10.1016/j.regsciurbeco.2012.04.004 Access Statistics for this article Regional Science and Urban Economics is currently edited by D.P McMillen and Y. Zenou More articles in Regional Science and Urban Economics from Elsevier |
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