Abstract
Most models of urban spatial structure assume a rudimentary labor market and ignore suburban employment. This paper provides the first complete comparative static analysis of an open urban model with a full labor market, with an extension to employment in a suburban beltway or business district. Adding a full labor market makes several results, including the impacts of transportation costs, indeterminate in sign. Adding suburban employment increases the number of derivatives that cannot be signed, but wages in the city and suburban labor markets usually move in the same direction in response to an exogenous shock.
Original language | English (US) |
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Pages (from-to) | 575-605 |
Number of pages | 31 |
Journal | Regional Science and Urban Economics |
Volume | 25 |
Issue number | 5 |
DOIs | |
State | Published - Oct 1995 |
Keywords
- Comparative statics
- Full labor market
- Open urban model
ASJC Scopus subject areas
- Economics and Econometrics
- Urban Studies