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Cited by 164

The DOI matches its Crossref record; 1 of the 1 references it cites were found in a registry or an index.

The Incidence of Local Labor Demand Shocks

Open access
Notowidigdo, Matthew·2011·National Bureau of Economic Research
DOI 10.3386/w17167
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Abstract

Low-skill workers are comparatively immobile: when labor demand slumps in a city, low-skill workers are disproportionately likely to remain to face declining wages and employment.This paper estimates the extent to which (falling) housing prices and (rising) social transfers can account for this fact using a spatial equilibrium model.Nonlinear reduced form estimates of the model using U.S. Census data document that positive labor demand shocks increase population more than negative shocks reduce population, this asymmetry is larger for low-skill workers, and such an asymmetry is absent for wages, housing values, and rental prices.GMM estimates of the full model suggest that the comparative immobility of low-skill workers is not due to higher mobility costs per se, but rather a lower incidence of adverse labor demand shocks.

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Metadata

Authors
Notowidigdo, M.
Venue
National Bureau of Economic Research
Publisher
National Bureau of Economic Research
Published
2011-06
DOI
10.3386/w17167
OpenAlex
W3121587222
Cited by
164
References
1
Type
report
Language
en
Open access
green

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CoChat. (2026). Citation check: The Incidence of Local Labor Demand Shocks. https://app.cochat.ai/papers/10.3386/w17167
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Notowidigdo, M. (2011). The Incidence of Local Labor Demand Shocks. National Bureau of Economic Research. https://doi.org/10.3386/w17167

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