Sectoral Mobility and Unemployment with Heterogeneous Moving Costs.

A simple equilibrium model of sectoral reallocation is developed in order to study the impact of heterogeneous moving costs on unemployment. The model blends key elements of standard sectoral reallocation theory and the competitive search model. Heterogeneity in moving costs is introduced via mobile...

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Published in:Journal of Labor Research Vol. 34; no. 3; pp. 339 - 359
Main Authors: Lkhagvasuren, Damba, Nitulescu, Roy
Format: Article
Published: Springer Nature Sep2013
Subjects:
Online Access:View this record in EBSCOhost
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      dt: Sep2013
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      pub: Springer Nature
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        89657960
        10.1007/s12122-013-9163-3
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        atl: Sectoral Mobility and Unemployment with Heterogeneous Moving Costs.
      aug:
        au:
          Lkhagvasuren, Damba
          Nitulescu, Roy
        affil: Department of Economics, Concordia University, 1455 de Maisonneuve Blvd. West Montreal H3G 1M8 Canada
      su:
        Unemployment
        Occupational mobility
        Employment
        Labor mobility
        Cost
        Job vacancies
      sug:
        subj:
          Unemployment
          Occupational mobility
          Employment
          Labor mobility
          Cost
          Job vacancies
      keyword:
        Aggregate unemployment
        Aging population
        Competitive search
        homeownership
        Island model
        J61
        J62
        J63
        J64
        Net and gross mobility
        Sectoral unemployment
        Aggregate unemployment
        Aging population
        Competitive search
        homeownership
        Island model
        J61
        J62
        J63
        J64
        Net and gross mobility
        Sectoral unemployment
      ab: A simple equilibrium model of sectoral reallocation is developed in order to study the impact of heterogeneous moving costs on unemployment. The model blends key elements of standard sectoral reallocation theory and the competitive search model. Heterogeneity in moving costs is introduced via mobile and immobile workers. The impact of mobile workers on the unemployment rates of mobile and immobile workers is of particular interest. The model shows that the share of mobile workers raises their unemployment rate. The model also shows that when labor mobility is driven by a sectoral level aggregate disturbance, mobile workers can have a non-monotonic, but globally negative impact on the unemployment rate of immobile workers. However, when labor mobility is driven by an idiosyncratic sector-worker match effect, the share of mobile workers raises the unemployment rate of immobile workers.
      pubtype: Academic Journal
      doctype: Article
      src: R
    language: English
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