workers distributed between them. We introduce commuting costs and search-matching frictions to deal with the spatial mismatch … job centers. In a decentralized economy job-seekers do not internalize a composition externality they impose on all the …

workers distributed between them. We introduce commuting costs and search-matching frictions to deal with the spatial mismatch … between workers and firms. In a decentralized economy job-seekers do not internalize a composition externality they impose on …

workers distributed between them. We introduce commuting costs and search-matching frictions to deal with the spatial mismatch … between workers and firms. In a decentralized economy job-seekers do not internalize a composition externality they impose on …

. First, we explore the role of commuting for local labor markets and their capacity to absorb productivity shocks. Second, we … address the role of housing markets for quantitative analyses. Germany is an exciting laboratory because commuting across …

commuting developed in Monte et al. (2018) to address the workings of local labor markets in Germany. One key contribution … commuting measures have very little predictive power for these general equilibrium elasticities when the housing share is small … housing share has only little influence on the welfare effects and location patterns of counterfactual commuting cost …