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Benoit Schmutz (CREST) – "Search and Zipf "
CREST Microeconomics Seminar :
Date: 14th November 2018
Place: Room 3001.
Benoit Schmutz (CREST) – “Search and Zipf ”
We develop a theory of a system of cities based on a general equilibrium search and matching model of individual careers with an explicit spatial component. Heterogeneous firms and workers continuously decide where to locate within a set of imperfectly connected local labor markets and engage in wage bargaining using both remote and local match opportunities as threat points. While parsimoniously parameterized and not resting upon restrictive assumptions regarding labor mobility, the model allows us to introduce the structural origins of workers’ sorting, firms’ selection and matching-based agglomeration economies into a unified framework. We use simulations to evaluate the role played by these three mechanisms on city size distribution.
Roxana Fernandez Machado (CREST), Marie Laure Allain (CREST), and Pierre Boyer (CREST)
Food provided, no registration needed.