TY  - BOOK
AU  - Heise,Sebastian
AU  - Porzio,Tommaso
ED  - National Bureau of Economic Research.
TI  - Labor Misallocation Across Firms and Regions
T2  - NBER working paper series
PY  - 2022///
CY  - Cambridge, Mass.
PB  - National Bureau of Economic Research
KW  - Mobility, Unemployment, Vacancies, and Immigrant Workers
KW  - jelc
KW  - Economic Development
KW  - General Regional Economics
N1  - July 2022; Hardcopy version available to institutional subscribers
N2  - 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
UR  - https://www.nber.org/papers/w30298
UR  - http://dx.doi.org/10.3386/w30298
ER  -