Please use this identifier to cite or link to this item: https://hdl.handle.net/10419/52732 
Authors: 
Year of Publication: 
2011
Series/Report no.: 
IWQW Discussion Papers No. 12/2011
Publisher: 
Friedrich-Alexander-Universität Erlangen-Nürnberg, Institut für Wirtschaftspolitik und Quantitative Wirtschaftsforschung (IWQW), Nürnberg
Abstract: 
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.
Subjects: 
unemployment
matching
commuting
search
labor market policy
JEL: 
R12
R13
R14
H22
Document Type: 
Working Paper

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