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Mismatch unemployment and the geography of job search

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Marinescu, Ioana and Rathelot, Roland (2018) Mismatch unemployment and the geography of job search. American Economic Journal : Macroeconomics, 10 (3). pp. 42-70. doi:10.1257/mac.20160312

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Official URL: https://doi.org/10.1257/mac.20160312

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Abstract

Could we significantly reduce U.S. unemployment by helping job seekers move closer to jobs? Using data from the leading employment board CareerBuilder.com, we show that, indeed, workers dislike applying to distant jobs: job seekers are 35% less likely to apply to a job 10 miles away from their ZIP code of residence. However, because
job seekers are close enough to vacancies on average, this distaste for distance is fairly inconsequential: our search and matching model predicts that relocating job seekers to minimize unemployment would decrease unemployment by only 5.3%. Geographic mismatch is thus a minor driver of aggregate unemployment.

Item Type: Journal Article
Subjects: H Social Sciences > HB Economic Theory
H Social Sciences > HD Industries. Land use. Labor
Divisions: Faculty of Social Sciences > Economics
Library of Congress Subject Headings (LCSH): Labor market -- United States, Unemployment -- Government policy -- United States, Global Financial Crisis, 2008-2009, Labor economics, Job hunting, Employment agencies -- United States
Journal or Publication Title: American Economic Journal : Macroeconomics
Publisher: American Economic Association
ISSN: 1945-7707
Official Date: July 2018
Dates:
DateEvent
July 2018Published
28 July 2017Accepted
Volume: 10
Number: 3
Page Range: pp. 42-70
DOI: 10.1257/mac.20160312
Status: Peer Reviewed
Publication Status: Published
Access rights to Published version: Restricted or Subscription Access

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