The role of labor market structure in urban sprawl

Vincent Boitier

Regional Science and Urban Economics, 2018, vol. 73, issue C, 83-98

Abstract: In this article, I construct and calibrate a tractable search and matching model in which the residential density of workers is endogenous. Using this new framework, I demonstrate that labor market structure generates significant urban sprawl. I identify the fact that firms compensate workers for their spatial costs as the major cause of this large inefficiency. Next, I underline that optimality can be restored if the government implements an employee commuter-benefit program. Finally, I demonstrate that these results are robust to the inclusion of other features such as various job centers, wage settings, calibrations, preferences and social welfare functions.

Keywords: Urban sprawl; Search and spatial frictions; Efficiency (search for similar items in EconPapers)
JEL-codes: J63 J64 R14 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:regeco:v:73:y:2018:i:c:p:83-98

DOI: 10.1016/j.regsciurbeco.2018.06.003

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