Place Based Policies with Unemployment

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Place Based Policies with Unemployment

Many countries have policies aimed at creating jobs in depressed areas with high unemployment rates. In standard spatial equilibrium models with perfectly competitive labor and land markets, local job creation efforts are distortionary. We develop a stylized model of frictional local labor markets with the goal of studying the efficiency of unemployment differences across areas and the potentia...

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Place Based Policies and Unemployment

* We thank seminar participants at Berkeley and the AEA meetings in San Diego for useful comments and Attila Sandor Lindner for excellent research assistance.

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Nber Working Paper Series Place Based Policies with Unemployment

Many countries have policies aimed at creating jobs in depressed areas with high unemployment rates. In standard spatial equilibrium models with perfectly competitive labor and land markets, local job creation efforts are distortionary. We develop a stylized model of frictional local labor markets with the goal of studying the efficiency of unemployment differences across areas and the potentia...

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ژورنال

عنوان ژورنال: American Economic Review

سال: 2013

ISSN: 0002-8282

DOI: 10.1257/aer.103.3.238