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Local labor markets, job matching, and urban location

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Brueckner, Jan [University of California-Irvine] Thisse, Jacques-François [UCL] Zenou, Yves []

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.

Document type Article de périodique (Journal article)
Access type Accès restreint
Publication date 2002
Language Anglais
Journal information "International Economic Review" - Vol. 43, no. 1, p. 155-171 (Février 2002)
Peer reviewed yes
Publisher Wiley-Blackwell Publishing, Inc. (Malden, USA)
issn 0020-6598
Publication status Publié
Affiliations University of California-Irvine - Department of Economics
UCL - EUEN/CORE - Center for operations research and econometrics
Institutet för Näringslivsforskning (IFN) - Research Institute of Industrial Economics
Links
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Bibliographic reference Brueckner, Jan ; Thisse, Jacques-François ; Zenou, Yves. Local labor markets, job matching, and urban location. In: International Economic Review, Vol. 43, no. 1, p. 155-171 (Février 2002)
Permanent URL http://hdl.handle.net/2078.1/23327