We investigate an equilibrium search model in which the search frictions are increasing with the distance to the central business district allowing for on-the-job search and endogenous (monopsony) wage formation and land allocation. We find that there are many different possible outcomes with...

In this paper we use data on Spanish cities between 2006 and 2015 to study the Spanish urban system applying the model in Desmet and Rossi-Hansberg (2013). We decompose the determinants of the Spanish city size distribution into three main components: efficiency, amenities, and frictions. In the...