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Opportunities and Competition in Thick Labor Markets: Evidence from Plant Closures

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Haller, Peter ; Heuermann, Daniel F.
License: Creative Commons Attribution 4.0
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Date of publication of this fulltext: 02 Mar 2020 09:11


Since Marshall (1890), it has been widely held in urban economic theory that cities insure workers against the risk of unemployment by offering a larger pool of potential jobs. Using a large administrative panel data set on workers displaced as a result of plant closures, we examine whether positive effects from a higher urban job density are offset by more intense competition between workers. ...


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