This paper presents an amenity-based theory of location by income. The theory shows that the relative location of different income groups depends on the spatial pattern of amenities in a city. When the center has a strong amenity advantage over the suburbs, the rich are likely to live at central...

We investigate the role of spatial frictions in search equilibrium unemployment. For that, we develop a model of the labor market in which workers' location in an agglomeration depends on commuting costs, the endogenous price of land and the value of job search and employment. We first show that...

We consider a continuum of workers ranked according to their abilities to acquire education and two firms with different technologies that imperfectly compete in wages to attract these workers. Once employed, each worker bears an education cost proportional to his/her initial ability, this cost...