Unemployment, commuting, and search intensity
Matthias Wrede ()
No 12/2011, FAU Discussion Papers in Economics from Friedrich-Alexander University Erlangen-Nuremberg, Institute for Economics
Employing a standard matching unemployment model extended by within-labor-market-regions commuting, this paper analyzes the tradeoff between commuting costs and unemployment. Depending on whether commuters are able to bargain for fringe benefits, search may or may not be biased towards distant workplaces and less productive centers. As a consequence, unemployment benefits should be tied to search in high productivity regions. Using German county data, the paper tests some positive predictions that emerge from of the model. In particular, it confirms that increasing labor market tightness reduces the willingness to out-commute.
Keywords: unemployment; matching; commuting; search; labor market policy (search for similar items in EconPapers)
JEL-codes: R12 R13 R14 H22 (search for similar items in EconPapers)
New Economics Papers: this item is included in nep-dge, nep-geo, nep-lab and nep-ure
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:iwqwdp:122011
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