Everybody needs good neighbors? Labor mobility costs, cities and matching

B-Tier
Journal: Regional Science and Urban Economics
Year: 2015
Volume: 55
Issue: C
Pages: 39-54

Authors (2)

Score contribution per author:

1.005 = (α=2.01 / 2 authors) × 1.0x B-tier

α: calibrated so average coauthorship-adjusted count equals average raw count

Abstract

We develop an assignment model for a city with central and suburban labor markets connected by commuting. We show that not all workers benefit from the agglomeration economies created by the dense central business district. Low-skilled workers in the suburban district are worse off by being close to the dense central business district. High-skilled workers gain more from the urban scale. The existence of labor mobility costs induces only high-skilled workers in the suburbs to commute to the central business district, which results in a decrease in the local contact efficiency for the left-behind low-skilled workers. The empirical evidence from a Belgian linked employer–employee dataset confirms this novel finding.

Technical Details

RePEc Handle
repec:eee:regeco:v:55:y:2015:i:c:p:39-54
Journal Field
Urban
Author Count
2
Added to Database
2026-01-29