TY  - RPRT
        AU  - Kuhn, Moritz
AU  - Manovskii, Iourii
AU  - Qiu, Xincheng
        TI  - The Geography of Job Creation and Job Destruction
        PY  - 2021/Oct/
        PB  - Institute of Labor Economics (IZA)
        CY  - Bonn
        T2  - IZA Discussion Paper
        IS  - 14791
        UR  - https://www.iza.org/index.php/publications/dp14791
        AB  - 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 in spatial differences in unemployment, vacancies, job finding, and job filling within each country. This robust set of facts guides and disciplines 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 quantitatively 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.
        KW  - local labor markets
KW  - unemployment
KW  - vacancies
KW  - search and matching
        ER  -