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allow for behavioral substitution between leisure time at home and effort at work. In equilibrium, residing at a location … with a long commute affects the time available for leisure at home and therefore affects the trade-off between effort at … wages, which are both consistent with shirking and leisure being substitutable …
Persistent link: https://www.econbiz.de/10012751966
We propose a spatial search-matching model where both job creation and job destruction are endogenous. Workers are ex ante identical but not ex post since their job can be hit by a technological shock, which decreases their productivity. They reside in a city and commuting to the job center...
Persistent link: https://www.econbiz.de/10013317149
allow forbehavioral substitution between leisure time at home and effort at work... …
Persistent link: https://www.econbiz.de/10005863255
Within an efficiency wage framework, we study the effects of two revenue-neutral tax reformsthat change the progressivity of the labour tax system. A revenue-neutral increase in both thewage tax and tax exemption and a revenue-neutral change in the composition of labourtaxation towards the tax...
Persistent link: https://www.econbiz.de/10005862708
We develop a search-matching model with rural-urban migration and an explicit land market. Wages, job creation, urban housing prices are endogenous and we characterize the steady-state equilibrium. We then consider three different policies: a transportation policy that improves the public...
Persistent link: https://www.econbiz.de/10013069026
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 ties) than in sparsely populated areas. We also...
Persistent link: https://www.econbiz.de/10013059681
We develop a model where workers both choose their residential location (geographical space) and their social interactions (social space). In equilibrium, we show under which condition some individuals reside close to the job center while others live far away from it. Even though the two...
Persistent link: https://www.econbiz.de/10013016322
We develop a standard search-matching model in which mobility costs are so high that it is too costly for workers to relocate when a change in their employment status occurs. We show that, in equilibrium, wages increase with distance to jobs and commuting costs because firms need to compensate...
Persistent link: https://www.econbiz.de/10013317124
The Todaro Paradox states that policies aimed at reducing urban unemployment are bound to backfire: they will raise rather than reduce urban unemployment. The aim of this paper is to reexamine this paradox in the context of efficiency wage and search-matching models. For that, we study a policy...
Persistent link: https://www.econbiz.de/10012784075
This paper develops a novel procedure for proxying economic activity with day-time satellite imagery across time periods and spatial units, for which reliable data on economic activity are otherwise not available. In developing this unique proxy, we apply machine-learning techniques to a...
Persistent link: https://www.econbiz.de/10014076720