Spatial Mismatch, Search Effort and Urban Spatial Structure

Smith, Tony E.; Zenou, Yves

doi:10.2139/ssrn.382786

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Spatial Mismatch, Search Effort and Urban Spatial Structure

77 Pages Posted: 25 Feb 2003

See all articles by Tony E. Smith

Tony E. Smith

University of Pennsylvania - Department of Systems Engineering

Yves Zenou

Monash University - Department of Economics; Research Institute of Industrial Economics (IUI); IZA Institute of Labor Economics; Centre for Economic Policy Research (CEPR); Stockholm University

There are 2 versions of this paper

Date Written: January 2003

Abstract

The aim of this paper is to provide a new mechanism for the spatial mismatch hypothesis. Spatial mismatch can here be the result of optimizing behavior on the part of the labor market participants. In particular, the unemployed can choose low amounts of search and long-term unemployment if they reside far away from jobs. They choose voluntary not to relocate close to jobs because the short-run gains (low land rent and large housing consumption) are big enough compared to the long-run gains of residing near jobs (higher probability of finding a job).

Keywords: Job Matching, Search Intensities, Urban Segregation, MTO

JEL Classification: D83, J64, R14

Suggested Citation: Suggested Citation

Smith, Tony E. and Zenou, Yves, Spatial Mismatch, Search Effort and Urban Spatial Structure (January 2003). Available at SSRN: https://ssrn.com/abstract=382786 or http://dx.doi.org/10.2139/ssrn.382786