EconPapers    
Economics at your fingertips  
 

The Incidence of Local Labor Demand Shocks

Matthew Notowidigdo

Journal of Labor Economics, 2020, vol. 38, issue 3, 687 - 725

Abstract: Low-skill workers are comparatively immobile. This paper estimates the role of housing prices and social transfers in accounting for this fact using a spatial equilibrium model. Reduced-form estimates using US census data show that positive local labor demand shocks increase population more than negative shocks reduce population, that this asymmetry is larger for low-skill workers, and that such an asymmetry is absent for average wages, housing values, and rental prices. Generalized method of moments estimates reveal that the comparative immobility of low-skill workers is due not to higher mobility costs but to a lower incidence of adverse labor demand shocks.

Date: 2020
References: Add references at CitEc
Citations: View citations in EconPapers (61)

Downloads: (external link)
http://dx.doi.org/10.1086/706048 (application/pdf)
http://dx.doi.org/10.1086/706048 (text/html)
Access to the online full text or PDF requires a subscription.

Related works:
Working Paper: The Incidence of Local Labor Demand Shocks (2011) Downloads
Working Paper: The Incidence of Local Labor Demand Shocks (2011)
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:ucp:jlabec:doi:10.1086/706048

Access Statistics for this article

More articles in Journal of Labor Economics from University of Chicago Press
Bibliographic data for series maintained by Journals Division ().

 
Page updated 2025-03-22
Handle: RePEc:ucp:jlabec:doi:10.1086/706048