2012
DOI: 10.1007/s00168-012-0535-z
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Search unemployment and new economic geography

Abstract: This paper develops a general equilibrium geographical economics model which uses matching frictions on the labor market to generate regional unemployment disparities alongside the usual core-periphery pattern of industrial agglomeration. In the model, regional wage differentials do not only influence migration decisions of mobile workers, but also affect the bargaining process on local labor markets, leading to differences in vacancies and unemployment as well. In a setting with two regions, both higher or lo… Show more

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Cited by 8 publications
(3 citation statements)
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“…On the other hand, unemployment rates differ widely across local labour markets (Bilal 2021 ). Regional wage differentials do not only influence migration decisions of mobile workers, but also affect the bargaining process on local labour markets, leading to differences in vacancies and unemployment as well, depending on transport costs and the elasticity of substitution (vom Berge 2013 ). It is therefore particularly important to control for local unemployment rate.…”
Section: Discussionmentioning
confidence: 99%
See 1 more Smart Citation
“…On the other hand, unemployment rates differ widely across local labour markets (Bilal 2021 ). Regional wage differentials do not only influence migration decisions of mobile workers, but also affect the bargaining process on local labour markets, leading to differences in vacancies and unemployment as well, depending on transport costs and the elasticity of substitution (vom Berge 2013 ). It is therefore particularly important to control for local unemployment rate.…”
Section: Discussionmentioning
confidence: 99%
“…Our empirical analysis first relies on multilevel mixed-effects logistic models to model spatial as well as temporal dependencies (Baayen et al 2008 ) across different metropolitan areas. Metropolitan areas reflect local transportation, commuting, and demand patterns (vom Berge 2013 ). We also control for local unemployment rate variations that capture local labour market conditions (Bilal 2021 ).…”
Section: Introductionmentioning
confidence: 99%
“…(), Patuelli et al. (), Chiang (), vom Berge (), Zeilstra and Elhorst () or López‐Bazo and Montellón () are examples of newer studies on this topic based on extensive micro data. Elhorst () emphasizes that the Blanchard‐Katz approach includes the ‘best’ model available so far to model regional labour markets (Blanchard and Katz ).…”
mentioning
confidence: 99%