On-the-job search and city structure

Aico van Vuuren

No 662, Working Papers in Economics from University of Gothenburg, Department of Economics

Abstract: This paper investigates an equilibrium search model in which search frictions are increas- ing with the distance to a city’s central business district, allowing for on-the-job search and endogenous wage formation and land allocation. The findings suggest that the decentralized market results in a more segregated outcome than may be socially desirable. The externality comes from the misguided incentives for the low-paid workers, who have a high preference for central locations in order to climb up the job ladder. Policies reducing the rental costs of unemployed workers for locations close to the central business district may potentially increase welfare.

Keywords: Search; city structure; urban economics (search for similar items in EconPapers)
JEL-codes: J00 J64 R14 (search for similar items in EconPapers)
Pages: 41 pages
Date: 2016-06
New Economics Papers: this item is included in nep-dge, nep-geo and nep-ure
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http://hdl.handle.net/2077/44596 (text/html)

Related works:
Working Paper: On-the-Job Search and City Structure (2015)
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