American Economic Review Vol. 103 No. 3 2013
Place Based Policies with Unemployment
Abstract
We develop a stylized model of frictional local labor markets with the goal of studying the efficiency of unemployment differences across areas. The model adapts the widely used Diamond-Mortensen-Pissarides framework to a local labor market setting with a competitive housing market. The result is a simple search analogue of the classic Roback model that provides a tractable environment for studying the effects of local job creation efforts.
- DOI
- 10.1257/aer.103.3.238
- Volume
- 103
- Issue
- 3
- Pages
- 238-243
- Language
- en
- Sources
- bibtex:phds-export.bib crossref openalex