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The effect of location on finding a job in the Paris region

โœ Scribed by Laurent Gobillon; Thierry Magnac; Harris Selod

Publisher
John Wiley and Sons
Year
2010
Tongue
English
Weight
862 KB
Volume
26
Category
Article
ISSN
0883-7252

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โœฆ Synopsis

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 ยฉ 2010 John Wiley & Sons, Ltd.

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