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On-the-job search in urban areas

Author

Listed:
  • Keisuke Kawata

    (Graduate School of Economics, Osaka University)

  • Yasuhiro Sato

    (Graduate School of Economics, Osaka University)

Abstract

This study develops an on-the-job search model involving spatial structure. In this model, workers are either employed and commuting frequently to a central business district (CBD) or unemployed and commuting less frequently to the CBD to search for a job. When an unemployed worker succeeds in off-the-job search, the quality of the job match is determined stochastically: a good match yields high-productivity whereas a bad match yields low-productivity. Although a high-productivity worker does not search for a new job, a lowproductivity worker decides whether to conduct an on-the-job search, which would require additional commuting to the CBD. Analysis of this model demonstrates that in equilibrium, the relocation path of workers corresponds to their career path, while welfare analysis demonstrates that such a spatial structure distorts firms f decision regarding the posting of vacancies.

Suggested Citation

  • Keisuke Kawata & Yasuhiro Sato, 2011. "On-the-job search in urban areas," Discussion Papers in Economics and Business 11-03, Osaka University, Graduate School of Economics.
    • Handle: RePEc:osk:wpaper:1103
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    References listed on IDEAS

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    Cited by:

    1. Vincent Boitier, 2013. "Endogenous city size in urban search models: the case of high reallocation costs," ERSA conference papers ersa13p590, European Regional Science Association.
    2. Aico van Vuuren, 2015. "On-the-Job Search and City Structure," Tinbergen Institute Discussion Papers 15-016/VI, Tinbergen Institute.
    3. Kawata, Keisuke, 2015. "Work hour mismatches and on-the-job search," Economic Modelling, Elsevier, vol. 47(C), pages 280-291.
    4. Vuuren, Aico van, 2018. "City structure and the location of young college graduates," Journal of Urban Economics, Elsevier, vol. 104(C), pages 1-15.
    5. Vincent Boitier, 2014. "Unemployment Dispersion and City Configurations: Beyond the Bid Rent Theory," Working Papers hal-00999559, HAL.
    6. Keisuke Kawata & Mizuki Komura, 2015. "The Gender Division of Labor: A Joint Marriage and Job Search Model," IDEC DP2 Series 5-1, Hiroshima University, Graduate School for International Development and Cooperation (IDEC).
    7. Boitier, Vincent, 2018. "The role of labor market structure in urban sprawl," Regional Science and Urban Economics, Elsevier, vol. 73(C), pages 83-98.

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    More about this item

    Keywords

    City structure; On-the-job search; Unemployment; Efficiency; Relocation and career paths;
    All these keywords.

    JEL classification:

    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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