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 differences in labor market performance are large and highly persistent. Using data from the United States, Germany, and the United Kingdom, we
document striking similarities across these countries in the spatial differences in unemployment, vacancies, and job filling, finding, and separation rates. The
novel facts on the geography of vacancies and job filling are instrumental in guiding and disciplining the development of a theory of local labor market
performance. We find that a spatial version of a Diamond-Mortensen-Pissarides model with endogenous separations and on-the-job search quantitatively
accounts for all the documented empirical regularities. The model also quanitatively rationalizes why differences in job-separation rates have primary
importance in inducing differences in unemployment across space while changes in the job-finding rate are the main driver in unemployment fluctuations
over the business cycle.


Note: 
Length: 73
Creation-Date: 2024-11
Revision-Date:
File-URL: https://www.crctr224.de/research/discussion-papers/archive/dp609
File-Format: application/pdf
Handle: RePEc:bon:boncrc:CRCTR224_2024_609