Transport costs in a multiregional equilibrium job search model

Morten Marott Larsen, Ninette Pilegaard, Jos van Ommeren

Research output: Chapter in Book / Report / Conference proceedingChapterAcademicpeer-review


In this chapter, we introduce a multiregional equilibrium job search model to analyse the economic effects of intraregional and interregional transport cost changes. The key assumption is that unemployed job seekers and firms with vacancies have to search for each other. The regional unemployment and vacancy equilibrium rates, as well as the wage levels, are endogenously determined. According to the model, decreases in interregional transport costs tend to reduce local and national unemployment and increase vacancies. Model simulations indicate that wages are less sensitive compared to producer prices and that both labour-market search effects and negative externalities have substantial impacts on the overall effect of changes in transport costs.

Original languageEnglish
Title of host publicationRoad Pricing, the Economy and the Environment
EditorsChris Jensen-Butler
PublisherSpringer International Publishing AG
Number of pages34
ISBN (Electronic)9783540771500
ISBN (Print)9783540771494, 9783642095870
Publication statusPublished - 2008

Publication series

NameAdvances in Spatial Science
ISSN (Print)1430-9602
ISSN (Electronic)2197-9375

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