Efficiency wages, involuntary unemployment and urban spatial structure. (In: Recent Advances in Urban Economics and Land Use: a Special Issue in Honour of Hiroyuki Yamada)
Efficiency wages, involuntary unemployment and urban spatial structure. (In: Recent Advances in Urban Economics and Land Use: a Special Issue in Honour of Hiroyuki Yamada)
A labor market model is developed within an urban spatial context, where it is shown that efficiency-wage policies can lead to significant levels of involuntary unemployment. Commuting cost differences between workers and nonworkers tend to increase unemployment, and competition for land tends to segregate workers and nonworkers, with nonworkers relegated to the urban fringe. These findings are extended to a two-city system, where it is shown that even with free mobility of workers, significant wage and unemployment differentials can exist between cities characterized by different levels of productivity.
efficiency wages, unemployment, labor markets
547-573
Zenou, Yves
f7c3b72f-b6b6-4550-8b0f-00a127af082e
Smith, Tony E.
5447375a-2f26-4e65-9ad0-953d55a63c30
August 1995
Zenou, Yves
f7c3b72f-b6b6-4550-8b0f-00a127af082e
Smith, Tony E.
5447375a-2f26-4e65-9ad0-953d55a63c30
Zenou, Yves and Smith, Tony E.
(1995)
Efficiency wages, involuntary unemployment and urban spatial structure. (In: Recent Advances in Urban Economics and Land Use: a Special Issue in Honour of Hiroyuki Yamada).
Regional Science and Urban Economics, 25 (4), .
(doi:10.1016/0166-0462(95)02100-9).
Abstract
A labor market model is developed within an urban spatial context, where it is shown that efficiency-wage policies can lead to significant levels of involuntary unemployment. Commuting cost differences between workers and nonworkers tend to increase unemployment, and competition for land tends to segregate workers and nonworkers, with nonworkers relegated to the urban fringe. These findings are extended to a two-city system, where it is shown that even with free mobility of workers, significant wage and unemployment differentials can exist between cities characterized by different levels of productivity.
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Published date: August 1995
Keywords:
efficiency wages, unemployment, labor markets
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Local EPrints ID: 33079
URI: http://eprints.soton.ac.uk/id/eprint/33079
ISSN: 0166-0462
PURE UUID: eebbd154-f3f4-41d8-8bfb-a31be9a34bc0
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Date deposited: 13 Dec 2007
Last modified: 17 Jul 2017 15:54
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Author:
Yves Zenou
Author:
Tony E. Smith
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