Labor Misallocation Across Firms and Regions /
Heise, Sebastian.
Labor Misallocation Across Firms and Regions / Sebastian Heise, Tommaso Porzio. - Cambridge, Mass. National Bureau of Economic Research 2022. - 1 online resource: illustrations (black and white); - NBER working paper series no. w30298 . - Working Paper Series (National Bureau of Economic Research) no. w30298. .
July 2022.
We develop a frictional labor market model with multiple regions and heterogeneous firms to study how frictions impeding labor mobility across space affect the joint allocation of labor across firms and regions. Bringing the model to matched employer-employee data from Germany, we find that spatial frictions generate large misallocation of labor across firms within regions. By shielding firms from competition for workers from other regions, spatial frictions allow low productivity firms to expand, reducing aggregate productivity. Overall, we show that taking into account the characteristics of the local labor market is important to quantify the aggregate losses from spatial frictions.
System requirements: Adobe [Acrobat] Reader required for PDF files.
Mode of access: World Wide Web.
Mobility, Unemployment, Vacancies, and Immigrant Workers
Economic Development
General Regional Economics
Labor Misallocation Across Firms and Regions / Sebastian Heise, Tommaso Porzio. - Cambridge, Mass. National Bureau of Economic Research 2022. - 1 online resource: illustrations (black and white); - NBER working paper series no. w30298 . - Working Paper Series (National Bureau of Economic Research) no. w30298. .
July 2022.
We develop a frictional labor market model with multiple regions and heterogeneous firms to study how frictions impeding labor mobility across space affect the joint allocation of labor across firms and regions. Bringing the model to matched employer-employee data from Germany, we find that spatial frictions generate large misallocation of labor across firms within regions. By shielding firms from competition for workers from other regions, spatial frictions allow low productivity firms to expand, reducing aggregate productivity. Overall, we show that taking into account the characteristics of the local labor market is important to quantify the aggregate losses from spatial frictions.
System requirements: Adobe [Acrobat] Reader required for PDF files.
Mode of access: World Wide Web.
Mobility, Unemployment, Vacancies, and Immigrant Workers
Economic Development
General Regional Economics