Job Search and Unemployment Duration: Implications for the Spatial Mismatch Hypothesis

Rogers, Cynthia L.

doi:10.1006/juec.1996.2017

Cited by 133 publications

(98 citation statements)

References 14 publications

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“…, where V U and V L are de…ned by (13) and (14). Equation (16) says that a non-shirker obtain today V NS L but can lose his/her job with a probability ± and then obtain a negative surplus of ¡(I NS L ¡ I U ).…”

Section: The E¢ciency Wagementioning

confidence: 99%

“…To provide an economic mechanism for the spatial mismatch hypothesis, this literature has mostly taken the point of view of workers. If indeed workers (especially minorities) reside far away from jobs, then they have poorer information on jobs and their search e¢ciency is lower than those residing closer to jobs (see in particular Rogers [13], Seater [14], Wasmer and Zenou [18], Smith and Zenou [16]). Others have argued that black workers refuse to take jobs that involve excessively long commutes (Zax and Kain [20], Brueckner and Zenou [2]).…”

Section: Introductionmentioning

confidence: 99%

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How do firms redline workers?

Zénou

2002

Journal of Urban Economics

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This Discussion Paper is issued within the framework of IZA's research area The Future of Labor. Any opinions expressed here are those of the author(s) and not those of the institute. Research disseminated by IZA may include views on policy, but the institute itself takes no institutional policy positions.The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent, nonprofit limited liability company (Gesellschaft mit beschränkter Haftung) supported by the Deutsche Post AG. The center is associated with the University of Bonn and offers a stimulating research environment through its research networks, research support, and visitors and doctoral programs. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. The current research program deals with (1) mobility and flexibility of labor, (2) internationalization of labor markets, (3) welfare state and labor market, (4) labor markets in transition countries, (5) the future of labor, (6) evaluation of labor market policies and projects and (7) general labor economics.IZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available on the IZA website (www.iza.org) or directly from the author. In a city where individuals endogenously choose their residential location, firms determine their spatial efficiency wage and a geographical red line beyond which they do not recruit workers. This is because workers experiencing longer commuting trips provide lower effort levels than those residing closer to jobs. By solving simultaneously for the land and labor market equilibrium, we show that there exists a unique market equilibrium that determines the location of all individuals in the city, the land rent, the efficiency wage, the recruitment area and the unemployment level in the economy. This model is able to provide a new mechanism for the spatial mismatch hypothesis by taking the firm's viewpoint. Distance to jobs is harmful not because workers have low information about jobs (search) or because commuting costs are too high but because firms do not hire remote workers. JEL Classification:J41, R14

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Section: The E¢ciency Wagementioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

How do firms redline workers?

Zénou

2002

Journal of Urban Economics

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“…Inter-city tests of the mismatch hypothesis generally find stronger effects of job access than do cross-neighborhood studies within a single metropolitan area (examples include Mooney (1969), Farley (1987); Ihlanfeldt and Sjoquist (1989);andWeinberg (1999,2000), although DworakFisher (2002) finds smaller effects; Martin (2001) shows continuing importance of the mismatch). Only recently has work in this vein begun to consider endogenous neighborhood choice (see Raphael (1998), Rogers (1997), Ross (1998) and Weinberg (1999Weinberg ( ,2000 and Jencks and Mayer (1990b) for a criticism of earlier work). 4 The data also oversample economically-disadvantaged whites.…”

Section: Introductionmentioning

confidence: 99%

Do Neighborhoods Affect Hours Worked? Evidence from Longitudinal Data

Weinberg

Reagan²,

Yankow³

2004

Journal of Labor Economics

177

134

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Researchers have argued that neighborhoods are an important determinant of labor activity. Using confidential street address data from the NLSY79, respondents were linked to neighborhood social characteristics and measures of job proximity. A one standard deviation increase in the social characteristics of a neighborhood increases annual hours by 6.1%; a similar increase in job proximity raises hours by 4.7%. Labor market activity at the individual level is positively related to labor market activity of neighbors. But employment is not the only neighborhood characteristic that matters. Being in a disadvantaged neighborhood, as measured by a variety of characteristics, reduces market work. Social interactions have non-linear effects with the greatest impact in the worst neighborhoods. Social interactions are also more important for less educated workers. Estimates that do not account for neighborhood selection on the basis of time-invariant and time-varying unobserved individual characteristics substantially overstate the social effects of neighborhoods but understate the effects of job access.

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“…This can be a result of the empirical strategy adopted here, in which commuting time spent by workers is used to calculate the potential commuting time an unemployed person would have spent in case she was employed. It may also be an indication that the spatial mismatch has a stronger effect than alternative measures of unbalance in the labour market, such as unemployment duration, as it was found in the literature (see for instance Rogers 1997). Finally, the adequate estimation strategy should allow for iterative effects between accessibility measures and metropolitan areas.…”

Section: Resultsmentioning

confidence: 90%

“…Moreover, under-privileged groups are more affected by the lack of accessibility. The same dependent variable is employed by Rogers (1997), whose results indicate that unemployment duration in the Pittsburgh labour market area is influenced by residential location relative to employment opportunities, especially for less-educated individuals. According to Johnson (2006), the efficiency of job search is largely related to job accessibility.…”

Section: Spatial Mismatch and Labour Market Equilibriummentioning

confidence: 99%

Spatial mismatch, wages and unemployment in metropolitan areas in Brazil

Barufi

Haddad

2017

REGION

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Abstract. The spatial mismatch hypothesis states that a lack of connection to job opportunities may affect an individual's prospects in the labour market, especially for low-skilled workers. This phenomenon is especially observed in large urban areas, in which low-skilled minorities tend to live far away from jobs and face geographical barriers to finding and keeping jobs. This paper aims to investigate whether this negative relationship between spatial mismatch and labour market outcomes is valid in Brazil after controlling for individual characteristics. Our conclusions indicate that there is no clear relation between different measures of accessibility to jobs and the probability of being unemployed. However, for wages there is a clear correlation, which is stronger in larger metropolitan areas than in the country and has a more detrimental effect for low-skilled workers. This paper contributes to the literature by investigating the spatial mismatch in urban labour markets in Brazil. For the empirical literature in the country, this is an original contribution, as the comparison of intra-urban labour market dynamics of different urban areas provide a more comprehensive perspective of the role city size may play in local labour markets. Given the exploratory nature of this work, our results still rely on strong identification hypotheses to avoid potential bias related to simultaneous location decisions of workers and firms within the city. Even if these conditions do not hold, the results are still meaningful as they provide a better understanding of the conditional distribution of wages and the unemployment rate in the biggest metropolitan areas of Brazil.JEL classification: R32, J64, J31

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Job Search and Unemployment Duration: Implications for the Spatial Mismatch Hypothesis

Cited by 133 publications

References 14 publications

How do firms redline workers?

How do firms redline workers?

Do Neighborhoods Affect Hours Worked? Evidence from Longitudinal Data

Spatial mismatch, wages and unemployment in metropolitan areas in Brazil

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