Job Displacement and the Duration of Joblessness: The Role of Spatial Mismatch

51 Pages Posted: 28 Apr 2014

See all articles by Fredrik Andersson

Fredrik Andersson

Office of the Comptroller of the Currency (OCC)

John Haltiwanger

University of Maryland - Department of Economics; National Bureau of Economic Research (NBER); Institute for the Study of Labor (IZA)

Mark J. Kutzbach

Federal Deposit Insurance Corporation

Henry Pollakowski

Harvard University - Harvard Graduate School of Design

Daniel H. Weinberg

DHW Consulting

Multiple version iconThere are 2 versions of this paper

Date Written: April 2014

Abstract

This paper presents a new approach to the measurement of the effects of spatial mismatch that takes advantage of matched employer-employee administrative data integrated with a person-specific job accessibility measure, as well as demographic and neighborhood characteristics. The basic hypothesis is that if spatial mismatch is present, then improved accessibility to appropriate jobs should shorten the duration of unemployment. We focus on lower-income workers with strong labor force attachment searching for employment after being subject to a mass layoff - thereby focusing on a group of job searchers that are plausibly searching for exogenous reasons. We construct person-specific measures of job accessibility based upon an empirical model of transport modal choice and network travel-time data, giving variation both across neighborhoods in nine metropolitan areas, as well as across neighbors. Our results support the spatial mismatch hypothesis. We find that better job accessibility significantly decreases the duration of joblessness among lower-paid displaced workers. Blacks, females, and older workers are more sensitive to job accessibility than other subpopulations.

Suggested Citation

Andersson, Per Fredrik Daniel and Haltiwanger, John C. and Kutzbach, Mark J. and Pollakowski, Henry O. and Weinberg, Daniel H., Job Displacement and the Duration of Joblessness: The Role of Spatial Mismatch (April 2014). NBER Working Paper No. w20066. Available at SSRN: https://ssrn.com/abstract=2430062

Per Fredrik Daniel Andersson (Contact Author)

Office of the Comptroller of the Currency (OCC) ( email )

400 7th St. SW
Washington, DC 20219-0001
United States
202-649-5528 (Phone)
571-465-3246 (Fax)

John C. Haltiwanger

University of Maryland - Department of Economics ( email )

College Park, MD 20742
United States
301-405-3504 (Phone)
301-405-3542 (Fax)

National Bureau of Economic Research (NBER) ( email )

1050 Massachusetts Avenue
Cambridge, MA 02138
United States

Institute for the Study of Labor (IZA) ( email )

P.O. Box 7240
Bonn, D-53072
Germany

Mark J. Kutzbach

Federal Deposit Insurance Corporation ( email )

550 17th Street NW
Washington, DC 20006

Henry O. Pollakowski

Harvard University - Harvard Graduate School of Design ( email )

48 Quincy Street
Gund Hall
Cambridge, MA 02138
United States

Daniel H. Weinberg

DHW Consulting ( email )

No Address Available

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