Sato, Yasuhiro; Zenou, Yves - C.E.P.R. Discussion Papers - 2014
We develop a model where the unemployed workers in the city can find a job either directly or through weak or strong … ties. We show that, in denser areas, individuals choose to interact with more people and meet more random encounters (weak …-state equilibrium where workers do not interact with weak ties, while, for a high level of urbanization, there is a unique steady …