Search activities, cost of living and local labor markets

Eleonora Patacchini, Yves Zenou

Research output: Contribution to journalArticleResearchpeer-review

14 Citations (Scopus)

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 languageEnglish
Pages (from-to)227-248
Number of pages22
JournalRegional Science and Urban Economics
Volume36
Issue number2
DOIs
Publication statusPublished - 1 Mar 2006
Externally publishedYes

Keywords

  • Job matching
  • Panel data
  • Search intensities

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