A search model of the labor market is augmented to include commuting time to work. The theory posits that wages are … impact of commute time on job acceptance decisions. We also use the theory to calculate the bargaining power of workers which …

labor market in which workers? location in an agglomeration depends on commuting costs, the endogenous price of land and the … land and labor markets are solved for simultaneously. We then compare this decentralized equilibrium to a social planner … interaction between land and labor markets, and decompose the equilibrium unemployment rate into two parts: a pure non-spatial one …