The Geography of Job Creation and Job Destruction
Abstract/Contents
- Abstract
- Spatial differences in unemployment rates are large and persistent. Our objective is to develop a quantitative theory of these differences. Considering the local unemployment rate as an (equilibrium) outcome between workers and firms, we document facts on both sides of the labor market. First, we confirm recent findings that differences in separation rates (unemployment inflows) are more important than differences in job-finding rates (unemployment outflows) in accounting for local unemployment differences. Second, we present novel facts on the differences in job-creation and job-filling rates. We document that local labor markets with lower unemployment rates are tighter, have lower vacancy filling rates, and higher average vacancy duration. These facts constitute empirical regularities in the United States, Germany, and the United Kingdom. On the theory side, we demonstrate that a Diamond-Mortensen-Pissarides model with endogenous separations quantitatively accounts for all the documented facts on the geography of job creation and job destruction. Furthermore, we demonstrate that this model not only matches labor market differences across space but also over the business cycle.
Description
| Type of resource | text |
|---|---|
| Date created | August 16, 2021 |
Creators/Contributors
| Author | Kuhn, Moritz |
|---|---|
| Author | Manovskii, Iourii |
| Author | Qiu, Xincheng |
| Organizer of meeting | Auclert, Adrien |
| Organizer of meeting | Mitman, Kurt |
| Organizer of meeting | Tonetti, Christopher |
| Organizer of meeting | Wong, Arlene |
Subjects
| Subject | economics |
|---|---|
| Genre | Text |
| Genre | Working paper |
| Genre | Grey literature |
Bibliographic information
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- User agrees that, where applicable, content will not be used to identify or to otherwise infringe the privacy or confidentiality rights of individuals. Content distributed via the Stanford Digital Repository may be subject to additional license and use restrictions applied by the depositor.
- License
- This work is licensed under a Creative Commons Attribution 4.0 International license (CC BY).
Preferred citation
- Preferred citation
- Kuhn, M., Manovskii, I., and Qiu, X. (2022). The Geography of Job Creation and Job Destruction. Stanford Digital Repository. Available at https://purl.stanford.edu/fz918qb2013
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SITE Conference 2021
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