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

Assar Lindbeck

Forskningsområden: Inkomstförsäkringar, bonussystem samt metodfrågor.

Några av de frågor Assar Lindbeck försöker besvara i sin forskning:

  • Hur påverkas inkomstförsäkringar av sociala normer?
  • Fordrar en valutaunion en fiskal union?

IFN kalendarium

Institutet för Näringslivsforskning, Grevgatan 34 - 2 tr, Box 55665, SE-102 15 Stockholm, Sweden | Tel: +46-(0)8-665 45 00 | info@ifn.se