distortions in the transport market. In absence of these distortions and despite spatial terms in wages, the standard condition …

. They reside in a city and commuting to the job center involves both pecuniary and time costs. Thus, workers with high wages …

different technologies that imperfectly compete in wages to attract these workers. Once employed, each worker bears an education … subsidy either the education cost or wages and compare them. We found that the first best allocation can only be implemented … firms and show that, in terms of welfare, subsidizing education costs or wages is strictly equivalent. …

We develop an urban-search model in which firms post wages. When all workers are identical, the Diamond paradox holds … conditions, two wages emerge in equilibrium. The commuting cost affects the land market but also the labor market through wages …