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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

This publication is part of the DEAL contract with Wiley.


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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