Matching Supply and Demand in Local Labor Markets: Comparison of Urban and Rural Areas

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Date

2006

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Cairn.info

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Public markets

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Michel Blanc et al., « Matching Supply and Demand in Local Labor Markets: Comparison of Urban and Rural Areas », Reflets et perspectives de la vie économique, ID : 10670/1.377afd...


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This paper compares rural and urban labor markets in order to check the impact of density on these markets when firms are heterogenous in their job requirements and workers are heterogenous in their skills. Using the results of a survey conducted in the Midi-Pyrénées region of France, we analyze how for comparable firm sizes and sectors, location influences matching potential job seekers and suppliers. We focus on local labor market density in order to analyze its impact on recruitment difficulties experienced by firms and their consequences for personnel turnover. Our basic premise is that in less dense markets and therefore in rural areas, the probability of an employer finding a suitable employee should be lower because heterogeneity among agents translates into a reduction in the diversity of job seekers’ skills and specializations and of firms’ labor requirements. JEL Classification numbers: C25, J63

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