Local labor markets, job matching, and urban location
(2002) International Economic Review — Vol. 43, n° 1, p. 155-171 (2002)
Files
pdfdocument.pdf
Restricted Access - Adobe PDF
- 329.52 KB
Details
- Authors
- Abstract
- We present a new way of modelling local labour markets by linking the space of workers' skills and the physical space of cities. The key lesson of our analysis is that firms exploit workers in these two spaces by setting wages that are below the competitive level. The degree of monopsony power depends on the elasticity of the firm's labour pool, which is inversely related to the costs workers incur in commuting and acquiring skills. Our analysis thus shows how socioeconomic ghettos emerge as workers with poor skill matches are also those who incur the highest commuting costs.
- Affiliations
University of California-Irvine Department of Economics Institutet för Näringslivsforskning (IFN) Research Institute of Industrial Economics
Citations
Brueckner, J., Thisse, J.-F., & Zenou, Y. (2002). Local labor markets, job matching, and urban location. International Economic Review, 43(1), 155-171. https://doi.org/10.1111/1468-2354.t01-1-00007 (Original work published 2002)