A spatial dimension is introduced in a popular model for search behaviour on the labour market. This offers the possibility for estimating the compensation in terms of the wage rate that is necessary to induce workers to commute an additional kilometre. Moreover, the model offers some insight into the spatial dimension of the way employers and employees get into contact with each other. The results suggest that the behavioural aspects play a much larger role in this respect than the spatial distribution of workers and employment. (A)
Abstract