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The Geography of Job Creation and Job Destruction

Moritz Kuhn, Iourii Manovskii () and Xincheng Qiu ()

No 14791, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: Spatial differences in labor market performance are large and highly persistent. Using data from the United States, Germany, and the United Kingdom, we document striking similarities in spatial differences in unemployment, vacancies, job finding, and job filling within each country. This robust set of facts guides and disciplines the development of a theory of local labor market performance. We find that a spatial version of a Diamond-Mortensen-Pissarides model with endogenous separations and on-the-job search quantitatively accounts for all the documented empirical regularities. The model also quantitatively rationalizes why differences in job-separation rates have primary importance in inducing differences in unemployment across space while changes in the job-finding rate are the main driver in unemployment fluctuations over the business cycle.

Keywords: local labor markets; unemployment; vacancies; search and matching (search for similar items in EconPapers)
JEL-codes: E24 E32 J63 J64 R13 (search for similar items in EconPapers)
Pages: 68 pages
Date: 2021-10
New Economics Papers: this item is included in nep-cwa, nep-dge, nep-geo, nep-lab, nep-mac and nep-ure
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Citations: View citations in EconPapers (3) Track citations by RSS feed

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Related works:
Working Paper: The Geography of Job Creation and Job Destruction (2021) Downloads
Working Paper: The Geography of Job Creation and Job Destruction (2021) Downloads
Working Paper: The Geography of Job Creation and Job Destruction (2021) Downloads
Working Paper: The Geography of Job Creation and Job Destruction (2021) Downloads
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