Recent theoretical work has examined the spatial distribution of unemployment using the efficiency wage model as the mechanism by which unemployment arises in the urban economy. This paper extends the standard efficiency wage model in order to allow for behavioral substitution between leisure...

We develop a model that analyzes the impact of residential neighborhood and parents' involvement in education on children's educational attainment and test it using the UK National Child Development Study. We find that the better the quality of the neighborhood, the higher the parents'...

This paper studies how the strength of social ties are affected by the geographical location of other individuals and their social capital. We characterize the equilibrium in terms of both social interactions and social capital. We show that lower travel costs increase not only the interaction...