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City structure and the location of young college graduates

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  • Vuuren, Aico van

Abstract

This paper investigates an equilibrium search model with on-the-job search, endogenous wage formation and land allocation. Search frictions are increasing with the distance to a city’s central business district. We find a positive relationship between wage and distance to jobs. This can be explained by the fact that the number of acceptable outside offers decreases with the wage. We are able to relate our results to some empirically relevant aspects on gentrification.

Suggested Citation

  • Vuuren, Aico van, 2018. "City structure and the location of young college graduates," Journal of Urban Economics, Elsevier, vol. 104(C), pages 1-15.
    • Handle: RePEc:eee:juecon:v:104:y:2018:i:c:p:1-15
    DOI: 10.1016/j.jue.2017.11.003
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    1. Guy Michaels & Ferdinand Rauch & Stephen J Redding, 2019. "Task Specialization in U.S. Cities from 1880 to 2000," Journal of the European Economic Association, European Economic Association, vol. 17(3), pages 754-798.
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    Cited by:

    1. Jean Flemming, 2018. "Costly Commuting and the Job Ladder," 2018 Meeting Papers 100, Society for Economic Dynamics.
    2. Xiao, Hongyu & Wu, Andy & Kim, Jaeho, 2021. "Commuting and innovation: Are closer inventors more productive?," Journal of Urban Economics, Elsevier, vol. 121(C).

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    More about this item

    Keywords

    Search; City structure; Urban economics; Gentrification;
    All these keywords.

    JEL classification:

    • J00 - Labor and Demographic Economics - - General - - - General
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns

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