We investigate the relationship between an individuals’ reservation wage and unemployment in the local area district. Largely unexplored in the literature this adds to the work which has examined the association between employee wages and unemployment—the ‘wage curve’.

We model the behavior of rational forward-looking agents in a spatial economy. The economic geography structure is built on Fujita et al. (1999)'s racetrack economy. Workers choose optimally what to consume at each period, as well as which spatial itinerary to follow in the geographical space....

We propose an integrated framework to discuss the empirical literature on the local determinants of agglomeration effects. We start by presenting the theoretical mechanisms that ground individual and aggregate empirical specifications. We gradually introduce static effects, dynamic effects, and...

This paper estimates agglomeration economies in Great Britain. The analysis employs a definition of urban areas as functional economic units developed by the OECD in collaboration with the European Union to investigate the size and sources of productivity disparities across urban areas. It uses...

Previous research finds that the greater geographic mobility of foreign than native-born workers following economic shocks helps to facilitate local labor market adjustment to shifting regional economic conditions. We examine the role that immigration may have played in enabling U.S. commuting...

This paper brings fresh empirical evidence on the factors responsible for the existence of regional unemployment disparities and unemployment persistence, the case of Greece (1981-2008) been taken as an example. The GMM methodology used in the study enables us to test for the existence of...

This paper proposes a spatial panel model for German matching functions to avoid possibly biased and inefficient estimates due to spatial dependence. We provide empirical evidence for the presence of spatial dependencies in matching data. Based on an official data set containing monthly...

This paper aims to provide a frame of mind to understand the link between structural change and regional unemployment, and, based on it, to survey the most recent literature. An overly optimistic view on the ability of the adjustment mechanism to generate convergence in local unemployment rates...

Fifteen years after German reunification, the facts about slow regional convergence have born out the prediction of Barro (1991), except that migration out of East Germany has not slowed down. I document that in particular the 18-29 year old are leaving East Germany, and that the emigration has...

In this paper, we test empirically for the increasing returns-based agglomeration and investigate the impact of the economic integration with the European Union on regional wage inequalities in Poland. In our study, we use the wage data for 16 Polish regions over the period of 1995-2009. Our...