We propose a spatial search-matching model where both job creation and job destruction are endogenous. Workers are ex ante identical but not ex post since their jobs can be hit by a technological shock which decreases their productivity. They reside in a city, and commuting to the job center...

Workers can have good or bad work habits. These traits are transmitted from one generation to the next through a learning and imitation process, which depends on parents’ investment in the trait and the social environment where children live. If a sufficiently high proportion of employers have...