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Why are Low-Skilled Workers less Mobile? The Role of Mobility Costs and Spatial Frictions

Abstract : Workers' propensity to migrate to another local labor market varies a lot by occupation. We use the model developed by ? to quantify the impact of mobility costs and search frictions on this mobility gap. We estimate the model on a matched employer-employee panel dataset describing labor market transitions within and between the 30 largest French cities for two groups at both ends of the occupational spectrum and find that: (i) mobility costs are very comparable in the two groups, so they are three times higher for blue-collar workers relative to their respective expected income; (ii) Depending on employment status, spatial frictions are between 1.5 and 3.5 times higher for blue-collar workers; (iii) Moving subsidies have little (and possibly negative) impact on the mobility gap, contrary to policies targeting spatial frictions.
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https://halshs.archives-ouvertes.fr/halshs-02951633
Contributor : Elisabeth Lhuillier <>
Submitted on : Monday, September 28, 2020 - 6:06:08 PM
Last modification on : Saturday, October 3, 2020 - 3:30:05 AM

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WP 2020 - Nr 31.pdf
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  • HAL Id : halshs-02951633, version 1

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Benoît Schmutz, Modibo Sidibé, Elie Vidal-Naquet. Why are Low-Skilled Workers less Mobile? The Role of Mobility Costs and Spatial Frictions. 2020. ⟨halshs-02951633⟩

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