We study the role of unemployment in the context of the endogeneous formation of a monocentric city in which firms set efficiency wages to deter shirking. We first show that, in equilibrium, the employed locate at the vicinity of the city-center, the unemployed reside at the city-edge and firms...

The aim of this paper is to show that both location and race matter for explaining the high criminality rate in cities. In our model, blacks and whites are identical in all respects. However, if, for no economic but for extrinsic reasons, everybody (including blacks) believes that blacks are...

We consider two typed of cities. In the European one the amenities are located at the city-center ( like e.g. Paris or London) whereas in the American-type city the amenites are at the city-edge (like e.g. Detroit, Los Angeles). We first show that the unemploymed reside at the vicinity of the...