 Does City Structure Affect Job Search and Welfare?Etienne Wasmer and
Yves Zenou
SciencePo Working papers Main from HAL Abstract: We develop a model in which workers' search efficiency is negatively affected by access to jobs. Workers' location in a city is endogenous and reflects a trade-off between commuting costs and the surplus associated with search. Different configurations emerge in equilibrium; notably, the unemployed workers may reside far away (segregated city) or close to jobs (integrated city). We prove that there exists a unique and stable market equilibrium in which both land and labor markets are solved for simultaneously. We find that, despite inefficient search in the segregated city equilibrium, the welfare difference between the two equilibria is not so large due to differences in commuting costs. We also show how a social planner can manipulate wages by subsidizing/taxing the transport costs and can accordingly restore the efficiency. Keywords: job matching; urban land use; transportation policies (search for similar items in EconPapers) Published in Journal of Urban Economics, 2002, 51 (3), pp.515 - 541. ⟨10.1006/juec.2001.2256⟩ There are no downloads for this item, see the EconPapers FAQ for hints about obtaining it. Related works: Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text Persistent link: https://EconPapers.repec.org/RePEc:hal:spmain:hal-03588618 Access Statistics for this paper More papers in SciencePo Working papers Main from HAL |
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