Please use this identifier to cite or link to this item: http://hdl.handle.net/10419/81508
Authors: 
Zenou, Yves
Year of Publication: 
2008
Series/Report no.: 
IFN Working Paper 752
Abstract: 
We propose a spatial search-matching model where both job creation and job destruction are endogenous. Workers are ex ante identical but not ex post since their job can be hit by a technological shock, which decreases their productivity. They reside in a city and commuting to the job center involves both pecuniary and time costs. Thus, workers with high wages are willing to live closer to jobs to save on time commuting costs. We show that, in equilibrium, there is a one-to-one correspondence between the productivity space and the urban location space. Workers with high productivities and wages reside close to jobs, have low commuting costs and pay high land rents. We also show that higher commuting costs and higher unemployment benefits lead to more job destruction.
Subjects: 
Job Search
Commuting Costs
Wage Distribution
Urban Land Use
JEL: 
D83
J41
J64
R14
Document Type: 
Working Paper

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