Template-Type: ReDIF-Paper 1.0
Title: The Geography of Job Creation and Job Destruction 
Author-Name: Moritz Kuhn
Author-Email: mokuhn@uni-bonn.de
Author-Name: Iourii Manovskii
Author-Email: manovski@econ.upenn.edu
Author-Name: Xincheng Qiu
Author-Email: qiux@sas.upenn.edu

Classification-JEL: J63, J64, E24, E32, R13
Keywords: Local Labor Markets, Unemployment, Vacancies, Search and Matching

Abstract: Spatial dierences in labor market performance are large and highly persistent. Using
data from the United States, Germany, and the United Kingdom, we document striking
similarities in spatial dierences in unemployment, vacancies, job nding, and job lling
within each country. This robust set of facts guides and disciplines the development of a
theory of local labor market performance. We nd that a spatial version of a Diamond-
Mortensen-Pissarides model with endogenous separations and on-the-job search quanti-
tatively accounts for all the documented empirical regularities. The model also quanti-
tatively rationalizes why dierences in job-separation rates have primary importance in
inducing dierences in unemployment across space while changes in the job-nding rate
are the main driver in unemployment 
uctuations over the business cycle.

Note: 
Length: 66
Creation-Date: 2021-12
Revision-Date: 
File-URL: https://www.crctr224.de/research/discussion-papers/archive/dp321
Handle: RePEc:bon:boncrc:CRCTR224_2021_321