Abstract
AbstractThis paper investigates how working location influences jobseekers' subsequent spatial job search. Further, it is assessed to what extent mobility between working regions is associated with wage growth. The results show that the working region functions as a prominent geographical anchor around which the new job search is focused. The jobseekers that do find a job far away from their old working region receive a small wage premium, but this premium disappears if selectivity is taken into account. It is concluded that employees demonstrate substantial stickiness to their working locations, and that this is motivated by asymmetry in search costs. No evidence was found that mobility between working regions in itself affects wages.
Highlights
Spatial job search behaviour and its pecuniary outcomes could be expected to be affected by the use of location‐ specific knowledge accumulated in the old working location as well as by location‐specific knowledge and housing considerations pertaining to the location of residence
Some descriptive findings pertaining to job search strategies are first shown and discussed
This paper has examined how the location of job influences a subsequent spatial job search and its pecuniary outcomes
Summary
Spatial job search behaviour and its pecuniary outcomes could be expected to be affected by the use of location‐ specific knowledge accumulated in the old working location as well as by location‐specific knowledge and housing considerations pertaining to the location of residence. By analysing a specific set of long‐distance commuters, I am able to separate the influence of location‐specific knowledge accumulated in the previous working location from the factors relating to the place of residence. The idea that there is a location‐specific component to knowledge, and that employees' productivity (and supposedly their wages) is influenced by the working location has been expressed by several authors. Despite the extensive attention paid to the spatial component of productivity, there is a lack of research into why and how job matches over various distances are made. This paper sheds light on employees' perspective on how the spatial job search is conducted
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