DP6199 The Effect of Location on Finding a Job in the Paris Region
|Author(s):||Laurent Gobillon, Thierry Magnac, Harris Selod|
|Publication Date:||March 2007|
|Keyword(s):||duration model, residential segregation, spatial mismatch, urban unemployment|
|JEL(s):||C41, J64, R23|
|Programme Areas:||Public Economics|
|Link to this Page:||cepr.org/active/publications/discussion_papers/dp.php?dpno=6199|
There are large spatial disparities in unemployment durations across the 1,300 municipalities in the Paris region (Ile-de-France). In order to characterize these imbalances, we estimate a proportional hazard model stratified by municipality on an exhaustive dataset of all unemployment spells starting in the first semester of 1996. This model allows us to recover a survival function for each municipality that is purged of individual observed heterogeneity. We show that only 30% of the disparities in the survival rates relate to observed individual variables. Nearly 70% of the remaining disparities are captured by local indicators, mainly segregation indices.