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  3. American Economic Review
  4. May 2013
  5. Place Based Policies with Unemployment

American Economic Review

ISSN 0002-8282 (Print) | ISSN 1944-7981 (Online)

Place Based Policies with Unemployment

  • Patrick Kline
  • Enrico Moretti
American Economic Review
vol. 103, no. 3, May 2013
(pp. 238–43)
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Abstract

We develop a stylized model of frictional local labor markets with the goal of studying the efficiency of unemployment differences across areas. The model adapts the widely used Diamond-Mortensen-Pissarides framework to a local labor market setting with a competitive housing market. The result is a simple search analogue of the classic Roback model that provides a tractable environment for studying the effects of local job creation efforts.

Citation

Kline, Patrick, and Enrico Moretti. 2013. "Place Based Policies with Unemployment." American Economic Review, 103 (3): 238–43. DOI: 10.1257/aer.103.3.238

Additional Materials

JEL Classification

  • E24 Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital
  • R12 Size and Spatial Distributions of Regional Economic Activity
  • R23 Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics