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(In)Efficient Commuting And Migration Choices: Theory And Policy In An Urban Search Model

Luca Marchiori, Julien Pascal and Olivier Pierrard

No 2022006, LIDAM Discussion Papers IRES from Université catholique de Louvain, Institut de Recherches Economiques et Sociales (IRES)

Abstract: We develop a monocentric urban search-and-matching model in which workers can choose to commute or to migrate within the region. The equilibrium endogenously allocates the population into three categories: migrants (relocate from their hometown to the city), commuters (traveling to work in the city) and home stayers (remaining in their hometown). We prove that the market equilibrium is usually not optimal: a composition externality may generate under- or over-migration with respect to the central planner’s solution, which in all cases results in under-investment in job vacancies and therefore production. We calibrate the model to the Greater Paris area to reproduce several gradients observed in the data, suggesting over-migration. We show how policy interventions can help to reduce inefficiencies.

Keywords: Migration; Commuting; Urban search-and-matching; Efficiency; Policy (search for similar items in EconPapers)
JEL-codes: E24 J68 R13 R23 (search for similar items in EconPapers)
Date: 2022-03-18
New Economics Papers: this item is included in nep-dge, nep-lab, nep-mac, nep-mig and nep-ure
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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Related works:
Journal Article: (In)efficient commuting and migration choices: Theory and policy in an urban search model (2023) Downloads
Working Paper: (In)efficient commuting and migration choices: Theory and policy in an urban search model (2022) Downloads
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