Commuting, Migration, and Local Employment Elasticities

• 成果类型: Article
• 署名作者: Monte, Ferdinando; Redding, Stephen J.; Rossi-Hansberg, Esteban
• 署名单位: Princeton University; Princeton University
• 刊物名称: AMERICAN ECONOMIC REVIEW
• ISSN/ISSBN: 0002-8282
• DOI: 10.1257/aer.20151507
• 发表日期: 2018
• 页码: 3855-3890
• 关键词: increasing returns; TRADE; determinants; GLOBALIZATION; economies; demand; shocks; IMPACT; place

摘要

We provide theory and evidence that the elasticity of local employment to a labor demand shock is heterogeneous depending on the commuting openness of the local labor market. We develop a quantitative general equilibrium model that incorporates spatial linkages in goods markets (trade) and factor markets (commuting and migration). We quantify this model to match the observed gravity equation relationships for trade and commuting. We find that empirically-observed reductions in commuting costs generate welfare gains of around 3.3 percent. We provide separate quasi-experimental evidence in support of the model's predictions using the location decisions of million dollar plants.