Article ID | Journal | Published Year | Pages | File Type |
---|---|---|---|---|
7383592 | Regional Science and Urban Economics | 2018 | 38 Pages |
Abstract
In this article, I construct and calibrate a tractable search and matching model in which the residential density of workers is endogenous. Using this new framework, I demonstrate that labor market structure generates significant urban sprawl. I identify the fact that firms compensate workers for their spatial costs as the major cause of this large inefficiency. Next, I underline that optimality can be restored if the government implements an employee commuter-benefit program. Finally, I demonstrate that these results are robust to the inclusion of other features such as various job centers, wage settings, calibrations, preferences and social welfare functions.
Keywords
Related Topics
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Authors
Vincent Boitier,