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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...
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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...
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We present a model that focuses on the links between location and educational choices in South African cities. Be comparing the Apartheid city and the post-Apartheid city, we show that the inequality in South Africa between blacks and whites decreases when Apartheid laws are removed.
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We introduce spatial dimension in a search equilibrium unemployment model. By assuming that workers' search efficiency decreases with the distance to the employment-center, two urban equilibrium configurations emerge: either the unemployed reside close to the employment-center or far away from...
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The author studies the role of unemployment in the context of the endogenous formation of a monocentric city where firms set efficiency wages to deter shirking.
Persistent link: https://www.econbiz.de/10005638825