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Title: The Geography of Job Creation and Job Destruction
Spatial differences in labor market performance are large and highly persistent. Using data from the United States, Germany, and the United Kingdom, we document striking similarities in spatial differences in unemployment, vacancies, job finding, and job filling within each country. This robust set of facts guides and disciplines the development of a theory of local labor market performance. We find that a spatial version of a Diamond-Mortensen-Pissarides model with endogenous separations and on-the-job search quantitatively accounts for all the documented empirical regularities. The model also quantitatively rationalizes why differences in job-separation rates have primary importance in inducing differences in unemployment across space while changes in the job-finding rate are the main driver in unemployment fluctuations over the business cycle.  more » « less
Award ID(s):
1824520
PAR ID:
10644371
Author(s) / Creator(s):
; ;
Publisher / Repository:
NBER working paper series
Date Published:
Journal Name:
NBER working paper series
Issue:
29399
ISSN:
0898-2937
Format(s):
Medium: X
Sponsoring Org:
National Science Foundation
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