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The effect of location on finding a job in the Paris region
Author(s) -
Gobillon Laurent,
Magnac Thierry,
Selod Harris
Publication year - 2011
Publication title -
journal of applied econometrics
Language(s) - English
Resource type - Journals
SCImago Journal Rank - 2.878
H-Index - 99
eISSN - 1099-1255
pISSN - 0883-7252
DOI - 10.1002/jae.1168
Subject(s) - unemployment , duration (music) , hazard , demographic economics , sorting , economics , geography , econometrics , economic growth , mathematics , art , chemistry , literature , organic chemistry , algorithm
Abstract Do spatial differences in unemployment duration reflect residential sorting or a true local effect? Focusing on the 1300 municipalities of the Paris region, we apply a methodology that disentangles individual and unspecified municipality effects. Estimating a proportional hazard model stratified by municipality and recovering a survival function for each municipality purged of individual observed heterogeneity, we show that local and individual characteristics add up in their contribution to unemployment duration. While only 30% of the spatial disparities in unemployment duration are explained by individual characteristics, 70% of the remaining disparities are captured by local indicators, mainly correlated with residential segregation. Copyright © 2010 John Wiley & Sons, Ltd.