2006–2010

Efficiency Wages and Unemployment in Cities: The Case of High-Relocation Costs

Särtryck nr 2006:2

Författare: Yves ZenouÅr: 2006 Publikation: Regional Science and Urban Economics Årgång (nr): 36 (1) Sidor: 49–71


We develop an urban model in which all jobs are located in the Central Business District (CBD) and workers, who have high relocation costs, optimally choose their residence between the CBD and the city fringe. We consider two information structures. In the first case, firms perfectly observe the residential location of all workers, while, in the second one, firms do not observe where workers live. In the perfect information equilibrium, we show that the efficiency wage is increasing with distance to jobs. We also demonstrate that workers are better off and landlords worse off under the perfect information equilibrium.


Referens:
Zenou, Yves (2006), "Efficiency Wages and Unemployment in Cities: The Case of High-Relocation Costs". Regional Science and Urban Economics 36(1), 49–71.

Aktuell forskare

Henrik Jordahl

Forskningsområden: Skattefinansierade tjänster, privatiseringar samt väljarbeteende.

Några av de frågor Henrik Jordahl försöker besvara i sin forskning:

  • Vad förklarar valet mellan offentlig och privat tjänsteproduktion?
  • Hur påverkar detta val tjänsternas kostnader och kvalitet?

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