Spatial Equilibrium with Unemployment and Wage Bargaining: Theory and Estimation
---- Acknowledgements -----
This paper will appear in a special issue of the Journal of Urban Economics focusing on local labour markets. We are grateful to Gilles Duranton for very helpful comments and suggestions. We also benefited from comments by seminar participants at the St. Louis Federal Reserve and at the Universite du Quebec a Montreal. Beaudry acknowleges support from the SSHRC of Canada and the Bank of Canada Fellowship Program. Green acknowledge support from the SSHRC of Canada. The views expressed herein are those of the authors and do not necessarily reflect the views of the National Bureau of Economic Research.