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Discussion Paper Details

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Full Details

Title: Externalities in the Matching of Workers and Firms in Britain

Author(s): Simon Burgess and Stefan Profit

Publication Date: April 1998

Keyword(s): Externalities, Matching Models, spatial dependence and unemployment outflows

Programme Area(s): Human Resources

Abstract: We provide empirical evidence on the nature of spatial externalities in a matching model for Britain. We use a monthly panel of outflows, unemployment and vacancy stocks data from the registers at Job centres in Britain; these are mapped on to travel-to-work areas. We find evidence of significant spill-over effects that are generally in line with the predictions of theory. For example, we find that, conditional on local labour market conditions, high unemployment levels in neighbouring areas raise the number of local filled vacancies but lower the local outflow from unemployment.

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Bibliographic Reference

Burgess, S and Profit, S. 1998. 'Externalities in the Matching of Workers and Firms in Britain'. London, Centre for Economic Policy Research. https://cepr.org/active/publications/discussion_papers/dp.php?dpno=1854