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Equilibrium urban unemployment

Wasmer, E. and Zenou, Y. (1997) Equilibrium urban unemployment. CEPDP, 368. Centre for Economic Performance, London School of Economics and Political Science, London, UK.

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Identification Number: 368

Abstract

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)
Official URL: http://cep.lse.ac.uk
Additional Information: © 1997 the authors
Subjects: H Social Sciences > HD Industries. Land use. Labor
Sets: Collections > Economists Online
Research centres and groups > Centre for Economic Performance (CEP)
Date Deposited: 01 Aug 2008 11:25
Last Modified: 01 Oct 2010 09:15
URI: http://eprints.lse.ac.uk/id/eprint/20312

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