Abstract
A model is considered in which optimal search intensity is a result of a trade-off between short-run 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.
| Original language | English |
|---|---|
| Pages (from-to) | 227-248 |
| Number of pages | 22 |
| Journal | Regional Science and Urban Economics |
| Volume | 36 |
| Issue number | 2 |
| DOIs | |
| Publication status | Published - 1 Mar 2006 |
| Externally published | Yes |
Keywords
- Job matching
- Panel data
- Search intensities
Cite this
Patacchini, E., & Zenou, Y. (2006). Search activities, cost of living and local labor markets. Regional Science and Urban Economics, 36(2), 227-248. https://doi.org/10.1016/j.regsciurbeco.2005.06.002