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| Author: | Zenou, Y. |
| Title: | Urban unemployment, agglomeration and transportation policies |
| Journal: | Journal of Public Economics
2000 : JUL, VOL. 77:1, p. 97-133 |
| Index terms: | Unemployment Transport Urban areas Public policy Models |
| Freeterms: | Government subsidies |
| Language: | eng |
| Abstract: | The role of unemployment in the context of the endogenous formation of a monocentric city in which firms set efficiency wages to deter shirking is studied. In equilibrium, the employed locate at the vicinity of the city-center, the unemployed reside at the city-edge and firms set up in the city-center. There is a spatial mismatch between location and jobs because the further away from jobs the unemployed, the larger the level of unemployment. Finally, some policy implications are derived. |
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