Social origins of a work ethic : norms, mobility and urban unemployment
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- Discussion papers (SAM) 
Neighbourhood effects and worker mobility have been proposed as explanations for the pattern of employment in cities. This paper presents a the oretical framework within which the joint impact of these two factors can be analyzed. The evolution of unemployment patterns is modelled as a stochastic process, where workers sometimes make employment decisions influenced by local norms, and sometimes decisions of where to live based on neighbourhood characteristics. A long run outcome of full employment and complete segregation is found to be robust to a wide range of process specifications. More nonsegregated long run outcomes are possible if mobility decisions are based on neighbourhood employment rates than if they are based on other neighbourhood characteristics.
UtgiverNorwegian School of Economics and Business Administration. Department of Economics