A model is considered in which optimal search intensity is a result of a trade-off between short-run losses due to higher search costs (more interviews, commuting, etc.) and long-run gains due to a higher chance of finding a job. We show that this optimal search intensity is higher in areas characterized by larger cost of living and/or higher labor market tightness. This model is then tested for England on a panel of sub-regional data. Controlling for unobserved heterogeneity between areas and other endogencity issues, both the local cost of living and the local labor market tightness are found to have a positive and significant effect on jobless average search intensity. (c) 2065 Elsevier B.V. All rights reserved.
Search activities, cost of living and local labor markets / Patacchini, Eleonora; Yves, Zenou. - In: REGIONAL SCIENCE AND URBAN ECONOMICS. - ISSN 0166-0462. - 36:2(2006), pp. 227-248. [10.1016/j.regsciurbeco.2005.06.002]
Search activities, cost of living and local labor markets
PATACCHINI, Eleonora;
2006
Abstract
A model is considered in which optimal search intensity is a result of a trade-off between short-run losses due to higher search costs (more interviews, commuting, etc.) and long-run gains due to a higher chance of finding a job. We show that this optimal search intensity is higher in areas characterized by larger cost of living and/or higher labor market tightness. This model is then tested for England on a panel of sub-regional data. Controlling for unobserved heterogeneity between areas and other endogencity issues, both the local cost of living and the local labor market tightness are found to have a positive and significant effect on jobless average search intensity. (c) 2065 Elsevier B.V. All rights reserved.I documenti in IRIS sono protetti da copyright e tutti i diritti sono riservati, salvo diversa indicazione.