Efficiency wages, involuntary unemployment and urban spatial structure
Article Abstract:
A labor market model was developed to determine the effects on involuntary unemployment of efficiency-wage policies, commuting cost differences and competition for land accessible to jobs. The model shows that efficiency-wage policies significantly contribute to involuntary unemployment. Commuting cost differences between workers and non-workers increase unemployment, while competition for land relegates the unemployed to the urban fringe. Extension of the model to a two-city system shows that significant wage and unemployment differentials may exist between cities with different productivity levels.
Publication Name: Regional Science & Urban Economics
Subject: Social sciences
ISSN: 0166-0462
Year: 1995
User Contributions:
Comment about this article or add new information about this topic:
Spatial mobility and competition for jobs: some theory and evidence for Western Germany
Article Abstract:
A study conducted to analyze the countervailing effects of job competition between employed and unemployed job on the labor market conditions for regional mobility is presented.
Publication Name: Regional Science & Urban Economics
Subject: Social sciences
ISSN: 0166-0462
Year: 2006
User Contributions:
Comment about this article or add new information about this topic: