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Local labor markets, job matching and urban location

Record type: Article

We present a new way of modeling local labor 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 labor 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.

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Citation

Brueckner, Jan K., Thisse, Jacques-Francois and Zenou, Yves (2002) Local labor markets, job matching and urban location International Economic Review, 43, (1), pp. 155-171. (doi:10.1111/1468-2354.t01-1-00007).

More information

Published date: 2002

Identifiers

Local EPrints ID: 33070
URI: http://eprints.soton.ac.uk/id/eprint/33070
ISSN: 0020-6598
PURE UUID: b7d768ee-2bcb-417e-acea-268e3dbb3db2

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Date deposited: 15 May 2006
Last modified: 17 Jul 2017 15:54

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Contributors

Author: Jan K. Brueckner
Author: Jacques-Francois Thisse
Author: Yves Zenou

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