Local Labor Markets, Job Matching, and Urban Location

Jan Brueckner, Jacques Thisse and Yves Zenou

International Economic Review, 2002, vol. 43, issue 1, 155-171

Abstract: We present a new way of modeling local labor markets by linking the space of workers' skills and the physical space of cities. The key lesson of our analysis is that firms exploit workers in these two spaces by setting wages that are below the competitive level. The degree of monopsony power depends on the elasticity of the firm's labor pool, which is inversely related to the costs workers incur in commuting and acquiring skills. Our analysis thus shows how socioeconomic ghettos emerge as workers with poor skill matches are also those who incur the highest commuting costs. Copyright 2002 by the Economics Department of the University of Pennsylvania and the Osaka University Institute of Social and Economic Resarch Association

Date: 2002
References: Add references at CitEc
Citations: View citations in EconPapers (89)

Downloads: (external link)
http://openurl.ingenta.com/content?genre=article&i ... &volume=43&spage=155 (application/pdf)
Free access to full text is restricted to Ingenta subscribers.

Related works:
Working Paper: Local labor markets, job matching, and urban location (2002)
Working Paper: Local Labour Markets, Job Matching and Urban Location (2000)
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:ier:iecrev:v:43:y:2002:i:1:p:155-171

Ordering information: This journal article can be ordered from
http://www.blackwell ... bs.asp?ref=0020-6598

Access Statistics for this article

International Economic Review is currently edited by Harold L. Cole

More articles in International Economic Review from Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association 160 McNeil Building, 3718 Locust Walk, Philadelphia, PA 19104-6297. Contact information at EDIRC.
Bibliographic data for series maintained by Wiley-Blackwell Digital Licensing () and ().