2006–2010

Endogenous Job Destruction and Job Matching in Cities

Reprint No. 2009:12

Author(s): Yves ZenouYear: 2009 Title: Journal of Urban Economics Volume (No.): 65 (3) Pages: 323–336
Online article (restrictions may apply)


We propose a spatial search-matching model where both job creation and job destruction are endogenous. Workers are ex ante identical but not ex post since their jobs can be hit by a technological shock which decreases their productivity. They reside in a city, and commuting to the job center involves both pecuniary and time costs. As a result, workers with high wages are willing to live closer to jobs to save on time commuting costs. We show that, in equilibrium, there is a one-to-one correspondence between the productivity space and the urban location space. Workers with high productivities and wages reside close to jobs, have low per distance commuting costs and pay high land rents. We also show that higher per distance commuting costs and higher unemployment benefits lead to more job destruction.


Reference:
Zenou, Yves (2009), "Endogenous Job Destruction and Job Matching in Cities". Journal of Urban Economics 65(3), 323–336.

Global index of the sharing economy

Timbro SEI

2018 Bergh Funcke Wernberg - Timbro Sharing Economy Index-1fHemsidan.jpg

Andreas Bergh, IFN and Lund University, is one of the authors of this book. The Timbro Sharing Economy Index is the first global index of the sharing economy. The index has been compiled using traffic volume data and scraped data, and provides a unique insight into the driving factors behind the peer-to-peer economy.

About the book

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In addition, IFN organizes seminars open to the public. Topics for these are derived from the IFN research.

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