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Commuting, migration, and local employment elasticities

Author(s): Monte, Ferdinando; Redding, Stephen J.; Rossi-Hansberg, Esteban A.

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dc.contributor.authorMonte, Ferdinando-
dc.contributor.authorRedding, Stephen J.-
dc.contributor.authorRossi-Hansberg, Esteban A.-
dc.date.accessioned2020-01-23T21:23:00Z-
dc.date.available2020-01-23T21:23:00Z-
dc.date.issued2018-12-01en_US
dc.identifier.citationMonte, F, Redding, SJ, Rossi-Hansberg, E. (2018). Commuting, migration, and local employment elasticities. American Economic Review, 108 (12), 3855 - 3890. doi:10.1257/aer.20151507en_US
dc.identifier.issn0002-8282-
dc.identifier.urihttp://arks.princeton.edu/ark:/88435/pr1k17v-
dc.description.abstract© 2018 American Economic Association. We provide theory and evidence that the elasticity of local employment to a labor demand shock is heterogeneous depending on the commuting openness of the local labor market. We develop a quantitative general equilibrium model that incorporates spatial linkages in goods markets (trade) and factor markets (commuting and migration). We quantify this model to match the observed gravity equation relationships for trade and commuting. We find that empirically- observed reductions in commuting costs generate welfare gains of around 3.3 percent. We provide separate quasi- experimental evidence in support of the model's predictions using the location decisions of million dollar plants.en_US
dc.format.extent1 - 37en_US
dc.language.isoenen_US
dc.relation.ispartofAmerican Economic Reviewen_US
dc.rightsFinal published version. Article is made available in OAR by the publisher's permission or policy.en_US
dc.titleCommuting, migration, and local employment elasticitiesen_US
dc.typeJournal Articleen_US
dc.identifier.doidoi:10.1257/aer.20151507-
dc.identifier.eissn1944-7981-
pu.type.symplectichttp://www.symplectic.co.uk/publications/atom-terms/1.0/journal-articleen_US

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