2006–2010

Search Activities, Cost of Living and Local Labor Markets

Reprint No. 2006:5

Author(s): Eleonora Patacchini and Yves ZenouYear: 2006 Title: Regional Science and Urban Economics Volume (No.): 36 (2) Pages: 227–248


A model is considered in which optimal search intensity is a result of a trade-off between shortrun losses due to higher search costs (more interviews, commuting, etc.) and long-run gains due to a higher chance of finding a job. We show that this optimal search intensity is higher in areas characterized by larger cost of living and/or higher labor market tightness. This model is then tested for England on a panel of sub-regional data. Controlling for unobserved heterogeneity between areas and other endogeneity issues, both the local cost of living and the local labor market tightness are found to have a positive and significant effect on jobless average search intensity.


Reference:
Patacchini, Eleonora and Yves Zenou (2006), "Search Activities, Cost of Living and Local Labor Markets". Regional Science and Urban Economics 36(2), 227–248.

Interdisciplinary European Studies

The European Union in a Changing World Order

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This book explores how the European Union responds to the ongoing challenges to the liberal international order. These challenges arise both within the EU itself and beyond its borders, and put into question the values of free trade and liberal democracy. 

About the book

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