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.