Search Intensity, Cost of Living and Local Labour Markets in Britain

Yves Zenou and Eleonora Patacchini

No 3722, CEPR Discussion Papers from C.E.P.R. Discussion Papers

Abstract: A model is considered in which optimal search intensity is a result of a trade-off between short-run losses due to higher search costs (more interviews, commuting...) and long-run gains due to a higher chance to find a job. We show that this optimal search intensity is higher in areas characterized by larger cost of living and/or higher labour market tightness. We then test this model using county-level data in England for the period 1991-2000. As predicted by the theoretical model, both the county cost of living and the county labour market tightness are found to have a positive and significant effect on the county search intensity. We also find positive spatial correlation between counties (i.e. clustering of counties with similar level of search intensity) and strong spatial spillover effects.

Keywords: Job matching; Search intensities; Dynamic panel data; Gmm estimation; Measurement errors; Spatial correlation (search for similar items in EconPapers)
JEL-codes: C23 D83 J64 R10 (search for similar items in EconPapers)
Date: 2003-01
New Economics Papers: this item is included in nep-eec, nep-geo, nep-lab and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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Working Paper: Search Intensity, Cost of Living and Local Labor Markets in Britain (2003)
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