How Local Are Labor Markets? Evidence from a Spatial Job Search Model

• 成果类型: Article
• 署名作者: Manning, Alan; Petrongolo, Barbara
• 署名单位: University of London; London School Economics & Political Science; University of London; London School Economics & Political Science; Queen Mary University London; University of London; Queen Mary University London
• 刊物名称: AMERICAN ECONOMIC REVIEW
• ISSN/ISSBN: 0002-8282
• DOI: 10.1257/aer.20131026
• 发表日期: 2017
• 页码: 2877-2907
• 关键词: Matching function; equilibrium; EMPLOYMENT; unemployment; segregation; policies; mismatch; time

摘要

This paper models the optimal search strategies of the unemployed across space to characterize local labor markets. Our methodology allows for linkages between numerous areas, while preserving tractability. We estimate that labor markets are quite local, as the attractiveness of jobs to applicants sharply decays with distance. Also, workers are discouraged from searching in areas with strong competition from other job-seekers. However, as labor markets overlap, a local stimulus or transport improvements have modest effects on local outcomes, because ripple effects in job applications dilute their impact across a series of overlapping markets.