Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/20645 
Year of Publication: 
2003
Series/Report no.: 
IZA Discussion Papers No. 692
Publisher: 
Institute for the Study of Labor (IZA), Bonn
Abstract: 
The aim of this paper is to provide a new mechanism for the spatial mismatch hypothesis. Spatial mismatch can here be the result of optimizing behavior on the part of the labor market participants. In particular, the unemployed can choose low amounts of search and long-term unemployment if they reside far away from jobs. They choose voluntary not to relocate close to jobs because the short-run gains (low land rent and large housing consumption) are big enough compared to the long-run gains of residing near jobs (higher probability of finding a job).
Subjects: 
job matching
search intensities
urban segregation
MTO
JEL: 
D83
R14
J64
Document Type: 
Working Paper

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