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How Important is Access to Jobs? Old Question - Improved Answer

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  • Åslund, Olof

    (IFAU, Institute for Labour Market Policy Evaluation)

  • Östh, John

    (Uppsala University)

  • Zenou, Yves

    (The Research Institute of Industrial Economics)

Abstract

We study the impact of job proximity on individual employment and earnings. The analysis exploits a Swedish refugee dispersal policy to get exogenous variation in individual locations. Using very detailed data on the exact location of all residences and workplaces in Sweden, we find that having been placed in a location with poor job access in 1990-91 adversely affected employment in 1999. Doubling the number of jobs in the initial location in 1990-91 is associ­ated with 2.9 percentage points higher employment probability in 1999. The analysis suggests that residential sorting leads to underestimation of the impact of job access.

Suggested Citation

  • Åslund, Olof & Östh, John & Zenou, Yves, 2006. "How Important is Access to Jobs? Old Question - Improved Answer," Working Paper Series 661, Research Institute of Industrial Economics.
    • Handle: RePEc:hhs:iuiwop:0661
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    More about this item

    Keywords

    Spatial Mismatch; Endogenous Location; Natural Experiment;
    All these keywords.

    JEL classification:

    • J15 - Labor and Demographic Economics - - Demographic Economics - - - Economics of Minorities, Races, Indigenous Peoples, and Immigrants; Non-labor Discrimination
    • J18 - Labor and Demographic Economics - - Demographic Economics - - - Public Policy
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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