Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/81159
Authors: 
Patacchini, Eleonora
Zenou, Yves
Year of Publication: 
2003
Series/Report no.: 
IUI Working Paper 607
Abstract: 
A model is considered in which optimal search intensity is a result of a trade off between short run losses due to higher search costs (more interviews, commuting...) and long-run gains due to a higher chance of finding a job. We show that this optimal search intensity is higher in areas characterized by larger cost of living and/or higher labor market tightness. This model is then tested for England on sub-regional data. We estimate a spatial error model and we find that both the local cost of living and the local labor market tightness are found to have a positive and significant effect on unemployed average search intensity. These findings are consistent with the prediction of the theoretical model.
Subjects: 
Job Matching
Search Intensities
Spatial Correlation
JEL: 
C21
J64
R10
Document Type: 
Working Paper

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