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Urbanization Effects on Job Search Decision

Yudai Higashi
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Yudai Higashi: Graduate School of Humanities and Social Sciences, Okayama University and Junior Research Fellow, Research Institute for Economics and Business Administration, Kobe University, Japan

No DP2020-26, Discussion Paper Series from Research Institute for Economics & Business Administration, Kobe University

Abstract: This paper examines the effect of industrial agglomeration on a non-working individual's decision to search for a job. The theory implies that agglomeration reduces search costs, enabling non-working individuals to search for jobs. The empirical analyses, using Japanese microdata, find that agglomeration raises the probability of searching for a job, supporting the theoretical prediction. Furthermore, this effect is significant only for females who are less educated, middle-aged and older, and married without children. Such groups tend to benefit from agglomeration because they have relatively higher potential search costs than do other groups.

Keywords: Agglomeration; Local labor market; Labor force participation; Heterogenous individual (search for similar items in EconPapers)
JEL-codes: J64 R11 R23 (search for similar items in EconPapers)
Pages: 43 pages
Date: 2020-09
New Economics Papers: this item is included in nep-geo, nep-lab and nep-ure
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https://www.rieb.kobe-u.ac.jp/academic/ra/dp/English/DP2020-26.pdf First version, 2020 (application/pdf)

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Persistent link: https://EconPapers.repec.org/RePEc:kob:dpaper:dp2020-26

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