Mixed Search Over Commutable Space

Keenan Dworak-Fisher

Abstract

We present a model of search equilibrium in a labor market characterized by more than one locus of employment, in which workers may commute between loci. Unlike previous work with this feature, the model produces outcomes in which unemployed workers sometimes choose to conduct “mixed search“ – simultaneously searching for jobs in more than one location. We examine the labor market properties of such equilibria and circumscribe the conditions under which they are preferred to other equilibria such as the “autarkic“ equilibrium in which no inter-area search is conducted. We then explore the effects of changes in inter-area commuting costs.