Wasmer, E. and Zenou, Y. (1997) Equilibrium urban unemployment. CEPDP, 368. Centre for Economic Performance, London School of Economics and Political Science, London, UK.Full text not available from this repository.
We introduce a spatial dimension in a search equilibrium unemployment model. By assuming that workers'' search efficiency decreases with the distance to the employment centre, two urban equilibrium configurations emerge: either the unemployed reside close to the employment centre or far away from it, depending on the values of the commuting costs and of the surplus associated with search, which depends on the labor market equilibrium. The labor market equilibrium itself depends crucially on these urban equilibria. We show that the unemployment level is lower in the first urban equilibrium.
|Item Type:||Monograph (Discussion Paper)|
|Additional Information:||© 1997 the authors|
|Library of Congress subject classification:||H Social Sciences > HD Industries. Land use. Labor|
|Sets:||Collections > Economists Online
Research centres and groups > Centre for Economic Performance (CEP)
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