Mismatch Unemployment and the Geography of Job Search
American Economic Journal: Macroeconomics
vol. 10,
no. 3, July 2018
(pp. 42-70)
Abstract
Could we significantly reduce US 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 percent less likely to apply to a job 10 miles (mi.) 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 percent. Geographic mismatch is thus a minor driver of aggregate unemployment.Citation
Marinescu, Ioana, and Roland Rathelot. 2018. "Mismatch Unemployment and the Geography of Job Search." American Economic Journal: Macroeconomics, 10 (3): 42-70. DOI: 10.1257/mac.20160312Additional Materials
JEL Classification
- E24 Employment; Unemployment; Wages; Intergenerational Income Distribution; Aggregate Human Capital; Aggregate Labor Productivity
- J41 Labor Contracts
- J61 Geographic Labor Mobility; Immigrant Workers
- J63 Labor Turnover; Vacancies; Layoffs
- J64 Unemployment: Models, Duration, Incidence, and Job Search
- R23 Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics
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