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  • 1. Ballester, Coralio
    et al.
    Calvo-Armengol, Antoni
    Zenou, Yves
    Stockholm University, Faculty of Social Sciences, Department of Economics.
    DELINQUENT NETWORKS2010In: Journal of the European Economic Association, ISSN 1542-4766, E-ISSN 1542-4774, Vol. 8, no 1, p. 34-61Article in journal (Refereed)
    Abstract [en]

    Delinquents are embedded in a network of relationships. Each delinquent decides in a noncooperative way how much delinquency effort he will exert. We characterize the Nash equilibrium and derive an optimal enforcement policy, called the key-player policy. We then extend our characterization of optimal single player network removal to optimal group removal, the key group. We also characterize and derive a policy that targets links rather than players. Finally, we endogenize the network connecting delinquents by allowing players to join the labor market instead of committing delinquent offenses. The key-player policy turns out to be much more complex because it depends on wages and on the structure of the network. (JEL: A14, C72, K42, L14)

  • 2. Ballester, Coralio
    et al.
    Zenou, Yves
    Stockholm University, Faculty of Social Sciences, Department of Economics. Research Institute of Industrial Economics, Sweden.
    Key Player Policies When Contextual Effects Matter2014In: The Journal of mathematical sociology, ISSN 0022-250X, E-ISSN 1545-5874, Vol. 38, no 4, p. 233-248Article in journal (Refereed)
    Abstract [en]

    We consider a model where the criminal decision of each individual is affected by not only her own characteristics, but also by the characteristics of her friends (contextual effects). We determine who the key player is, i.e., the criminal who once removed generates the highest reduction in total crime in the network. We propose a new measure, the contextual intercentrality measure, that generalizes the one proposed by Ballester, Calvo-Armengol, and Zenou (2006) by taking into account the change in contextual effects following the removal of the key player. We also provide an example showing that the key player can be different whether contextual effects are taken into account or not. This means that the planner may target the wrong person if it ignores the effect of the context when removing a criminal from a network.

  • 3. Battu, Harminder
    et al.
    Zenou, Yves
    Stockholm University, Faculty of Social Sciences, Department of Economics.
    OPPOSITIONAL IDENTITIES AND EMPLOYMENT FOR ETHNIC MINORITIES: EVIDENCE FROM ENGLAND2010In: Economic Journal, ISSN 0013-0133, E-ISSN 1468-0297, Vol. 120, no 542, p. f52-F71Article in journal (Refereed)
    Abstract [en]

    Where a community or group is socially excluded from a dominant group, some individuals of that group may identify with the dominant culture and others may reject that culture. The aim of this article is to investigate this issue by empirically analysing the potential trade-off for ethnic minorities between sticking to their own roots and labour market success. We find that the social environment of individuals and attachments to culture of origin has a strong association with identity choice. Our results also suggest that those non-whites who have preferences that accord with being 'oppositional' do experience an employment penalty.

  • 4. Berliant, Marcus
    et al.
    Zenou, Yves
    Stockholm University, Faculty of Social Sciences, Department of Economics.
    Labor Differentiation and Agglomeration in General Equilibrium2014In: International regional science review, ISSN 0160-0176, E-ISSN 1552-6925, Vol. 37, no 1, p. 36-65Article in journal (Refereed)
    Abstract [en]

    The aim of this article is to explore the structure of cities as a function of labor differentiation, gains to trade, a fixed cost for constructing the transportation network, a variable cost of commodity transport, and the commuting costs of consumers. Firms use different types of labor to produce different outputs. Locations of all agents are endogenous as are prices and quantities. This is among the first articles to apply smooth economy techniques to urban economics. Existence of equilibrium and its determinacy properties depend crucially on the relative numbers of outputs, types of labor, and firms. More differentiated labor implies more equilibria. We provide tight lower bounds on labor differentiation for existence of equilibrium. If these sufficient conditions are satisfied, then generically there is a continuum of equilibria for given parameter values. Finally, an equilibrium allocation is not necessarily Pareto optimal in this model.

  • 5. Bertoli, Simone
    et al.
    Dequiedt, Vianney
    Zenou, Yves
    Stockholm University, Faculty of Social Sciences, Department of Economics. IFN, Sweden.
    Can selective immigration policies reduce migrants' quality?2016In: Journal of Development Economics, ISSN 0304-3878, E-ISSN 1872-6089, Vol. 119, p. 100-109Article in journal (Refereed)
    Abstract [en]

    Destination countries can adopt selective immigration policies to improve migrants' quality. Screening potential migrants on the basis of observable characteristics also influences their self-selection on unobservables. We propose a model that analyzes the effects of selective immigration policies on migrants' quality, measured by their wages at destination. We show that the prevailing pattern of selection on unobservables influences the effect of an increase in selectivity, which can reduce migrants' quality when migrants are positively self-selected on unobservables. We also demonstrate that, in this case, the quality-maximizing share of educated migrants declines with the scale of migration.

  • 6. Bisin, Alberto
    et al.
    Patacchini, Eleonora
    Verdier, Thierry
    Zenou, Yves
    Stockholm University, Faculty of Social Sciences, Department of Economics. CEPR, UK; IFN, Sweden.
    Bend it like Beckham: Ethnic identity and integration2016In: European Economic Review, ISSN 0014-2921, E-ISSN 1873-572X, Vol. 90, p. 146-164Article in journal (Refereed)
    Abstract [en]

    We propose a theoretical framework to study the determinants of ethnic and religious identity along two distinct motivational processes: cultural distinction and cultural conformity. Under cultural conformity, ethnic identity is reduced by neighborhood integration, which weakens group loyalties and prejudices. On the contrary, under cultural distinction, ethnic minorities are more motivated in retaining their own distinctive cultural heritage the more integrated are the neighborhoods where they reside and work. Using data on ethnic preferences and attitudes provided by the Fourth National Survey of Ethnic Minorities in the UK we find evidence that might be consistent with intense ethnic and religious identity mostly formed as a cultural distinction mechanism. Consistently, we document that ethnic identities might be more intense in mixed than in segregated neighborhoods.

  • 7. Bisin, Alberto
    et al.
    Patacchini, Eleonora
    Verdier, Thierry
    Zenou, Yves
    Stockholm University, Faculty of Social Sciences, Department of Economics.
    Errata Corrige: are Muslim Immigrants Different in Terms of Cultural Integration?2011In: Journal of the European Economic Association, ISSN 1542-4766, E-ISSN 1542-4774, Vol. 9, no 5, p. 1012-1019Article in journal (Refereed)
  • 8. Bisin, Alberto
    et al.
    Patacchini, Eleonora
    Verdier, Thierry
    Zenou, Yves
    Stockholm University, Faculty of Social Sciences, Department of Economics.
    Ethnic Identity and Labor-Market Outcomes of Immigrants in Europe2011In: Economic Policy: A European Forum, ISSN 0266-4658, E-ISSN 1468-0327, Vol. 26, no 65, p. 57-92Article in journal (Refereed)
    Abstract [en]

    We study the relationship between ethnic identity and labour market outcomes of non-EU immigrants in Europe. Using the European Social Survey, we find that there is a penalty to be paid for immigrants with a strong identity. Being a first generation immigrant leads to a penalty of about 17% while second-generation immigrants have a probability of being employed that is not statistically different from that of natives. However, when they have a strong identity, second-generation immigrants have a lower chance of finding a job than natives. Our analysis also reveals that the relationship between ethnic identity and employment prospects may depend on the type of integration and labour market policies implemented in the country where the immigrant lives. More flexible labour markets help immigrants to access the labour market but do not protect those who have a strong ethnic identity.

  • 9. Bisin, Alberto
    et al.
    Patacchini, Eleonora
    Verdier, Thierry
    Zenou, Yves
    Stockholm University, Faculty of Social Sciences, Department of Economics.
    Formation and persistence of oppositional identities2011In: European Economic Review, ISSN 0014-2921, E-ISSN 1873-572X, Vol. 55, no 8, p. 1046-1071Article in journal (Refereed)
    Abstract [en]

    We develop a dynamic model of identity formation that explains why ethnic minorities may choose to adopt oppositional identities (i.e. some individuals may reject or not the dominant culture) and why this behavior may persist over time. We first show that the prevalence of an oppositional culture in the minority group cannot always be sustained in equilibrium. Indeed, because the size of the majority group is larger, there is an imposed process of exposition to role models from the majority group that favors the diffusion of mainstream values in the minority community. In spite of this, an oppositional culture in the minority group can nevertheless be sustained in steady state if there is enough cultural segmentation in terms of role models, or if the size of the minority group is large enough, or if the degree of oppositional identity it implies is high enough. We also demonstrate that the higher the level of harassment and the number of racist individuals in the society, the more likely an oppositional minority culture will emerge. We finally show that ethnic identity and socialization effort can be more intense in mixed rather than segregated neighborhoods.

  • 10. Cohen-Cole, Ethan
    et al.
    Patacchini, Eleonora
    Zenou, Yves
    Stockholm University, Faculty of Social Sciences, Department of Economics. The Research Institute of Industrial Economics (IFN), Sweden.
    Static and dynamic networks in interbank markets2015In: Network Science, ISSN 2050-1242, Vol. 3, no 01, p. 98-123Article in journal (Refereed)
    Abstract [en]

    This paper proposes a model of network interactions in the interbank market. Our innovation is to model systemic risk in the interbank network as the propagation of incentives or strategic behavior rather than the propagation of losses after default. Transmission in our model is not based on default. Instead, we explain bank profitability based on competition incentives and the outcome of a strategic game. As competitors' lending decisions change, banks adjust their own decisions as a result: generating a “transmission” of shocks through the system. We provide a unique equilibrium characterization of a static model, and embed this model into a full dynamic model of network formation. We also determine the key bank, which is the bank that is crucial for the stability of the financial network.

  • 11. De Marti, Joan
    et al.
    Zenou, Yves
    Stockholm University, Faculty of Social Sciences, Department of Economics. The Research Institute of Industrial Economics (IFN), Sweden; CEPR, United Kingdom.
    Networks games under incomplete information2015In: Journal of Mathematical Economics, ISSN 0304-4068, E-ISSN 1873-1538, Vol. 61, p. 221-240Article in journal (Refereed)
    Abstract [en]

    We consider a network game with strategic complementarities where the individual reward or the strength of interactions is only partially known by the agents. Players receive different correlated signals and they make inferences about other players’ information. We demonstrate that there exists a unique Bayesian-Nash equilibrium. We characterize the equilibrium by disentangling the information effects from the network effects and show that the equilibrium effort of each agent is a weighted combinations of different Katz–Bonacich centralities.

  • 12. Dequiedt, Vianney
    et al.
    Zenou, Yves
    Stockholm University, Faculty of Social Sciences, Department of Economics.
    International migration, imperfect information, and brain drain2013In: Journal of Development Economics, ISSN 0304-3878, E-ISSN 1872-6089, Vol. 101, p. 62-78Article in journal (Refereed)
    Abstract [en]

    We consider a model of international migration where skills of workers are imperfectly observed by firms in the host country and where information asymmetries are more severe for immigrants. than for natives. Because of imperfect information, firms statistically dicriminate highly-skilled migrants by paying them at their expected productivity. The decision of whether to migrate or not depends on the proportion of highly-skilled workers among the migrants. The migration game exhibits strategic complementarities, which, because of standard coordination problems, lead to multiple equilibria. We characterize them and examine how international migration affects the income of individuals in sending and receiving countries, and of migrants themselves. We also analyze under which conditions there is positive or negative self-selection of migrants.

  • 13. Gaigné, Carl
    et al.
    Zenou, Yves
    Stockholm University, Faculty of Social Sciences, Department of Economics. Research Institute of Industrial Economics (IFN), Sweden; GAINS, France.
    Agglomeration, city size and crime2015In: European Economic Review, ISSN 0014-2921, E-ISSN 1873-572X, Vol. 80, p. 62-82Article in journal (Refereed)
    Abstract [en]

    This paper analyzes the relationship between crime and agglomeration where the land, labor, product, and crime markets are endogenously determined. Our main theoretical findings are the following: (i) better accessibility to jobs decreases crime in the short run but may increase crime in the long run; (ii) the per-capita crime rate increases with city size; (iii) when allowing for endogenous policing, lower commuting costs make the impact of police on crime more efficient.

  • 14. Gautier, Pieter A.
    et al.
    Zenou, Yves
    Stockholm University, Faculty of Social Sciences, Department of Economics.
    Car ownership and the labor market of ethnic minorities2010In: Journal of Urban Economics, ISSN 0094-1190, E-ISSN 1095-9068, Vol. 67, no 3, p. 392-403Article in journal (Refereed)
    Abstract [en]

    We show how initial wealth differences between low-skilled minorities and white workers can generate differences in their labor-market outcomes. This even occurs in the absence of a taste for discrimination against ethnic minorities or exogenous differences in distance to jobs. Because of the initial wealth difference, minorities cannot afford to buy a car while whites can. Car ownership allows whites to reach more jobs per unit of time, which gives them a better bargaining position in the labor market. As a result, in equilibrium, ethnic minorities end up with both higher unemployment rates and lower wages than whites. Furthermore, we also show that it takes more time for minorities to reach their jobs even though they travel less miles when employed. Those predictions are consistent with the data. Better access to capital markets or better public transportation will reduce the differences in labor-market outcomes.

  • 15. Helsley, Robert W.
    et al.
    Zenou, Yves
    Stockholm University, Faculty of Social Sciences, Department of Economics. Research Institute of Industrial Economics (IFN), Sweden.
    Social networks and interactions in cities2014In: Journal of Economic Theory, ISSN 0022-0531, E-ISSN 1095-7235, Vol. 150, p. 426-466Article in journal (Refereed)
    Abstract [en]

    We examine how interaction choices depend on the interplay of social and physical distance, and show that agents who are more central in the social network, or are located closer to the geographic center of interaction, choose higher levels of interactions in equilibrium. As a result, the level of interactivity in the economy as a whole will rise with the density of links in the social network and with the degree to which agents are clustered in physical space. When agents can choose geographic locations, there is a tendency for those who are more central in the social network to locate closer to the interaction center, leading to a form of endogenous geographic separation based on social distance. We also show that the market equilibrium is not optimal because of social externalities. We determine the value of the subsidy to interactions that could support the first-best allocation as an equilibrium. Finally, we interpret our model in terms of labor-market networks and show that the lack of good job contacts would be here a structural consequence of the social isolation of inner-city neighborhoods.

  • 16. Jackson, Matthew O.
    et al.
    Zenou, Yves
    Stockholm University, Faculty of Social Sciences, Department of Economics.
    Economic analyses of social networks2013Book (Other (popular science, discussion, etc.))
  • 17. Jackson, Matthew O.
    et al.
    Zenou, Yves
    Stockholm University, Faculty of Social Sciences, Department of Economics. The Research Institute of Industrial Economics (IFN), Sweden; CIFAR, Toronto, Canada.
    Games on networks2015In: Handbook of Game Theory with Economic Applications / [ed] P. Young, S. Zamir, Elsevier, 2015, p. 95-163Chapter in book (Refereed)
    Abstract [en]

    We provide an overview and synthesis of the literatures analyzing games in which players are connected via a network structure. We discuss, in particular, the impact of the structure of the network on individuals’ behaviors. We focus on game theoretic modeling, but also include some discussion of analyses of peer effects, as well as applications to diffusion, employment, crime, industrial organization, and education.

  • 18. Koenig, Michael D.
    et al.
    Tessone, Claudio J.
    Zenou, Yves
    Stockholm University, Faculty of Social Sciences, Department of Economics.
    FROM ASSORTATIVE TO DISSORTATIVE NETWORKS: THE ROLE OF CAPACITY CONSTRAINTS2010In: Advances in Complex Systems, ISSN 0219-5259, Vol. 13, no 4, p. 483-499Article in journal (Refereed)
    Abstract [en]

    We consider a dynamic model of network formation where agents form and sever links based on the centrality of their potential partners. We show that the existence of capacity constrains in the amount of links an agent can maintain introduces a transition from dissortative to assortative networks. This effect can shed light on the distinction between technological and social networks as it gives a simple mechanism explaining how and why this transition occurs.

  • 19. Koenig, Michael D.
    et al.
    Tessone, Claudio J.
    Zenou, Yves
    Stockholm University, Faculty of Social Sciences, Department of Economics.
    Nestedness in networks: A theoretical model and some applications2014In: Theoretical Economics, ISSN 1933-6837, E-ISSN 1555-7561, Vol. 9, no 3, p. 695-752Article in journal (Refereed)
    Abstract [en]

    We develop a dynamic network formation model that can explain the observed nestedness in real-world networks. Links are formed on the basis of agents' centrality and have an exponentially distributed lifetime. We use stochastic stability to identify the networks to which the network formation process converges and find that they are nested split graphs. We completely determine the topological properties of the stochastically stable networks and show that they match features exhibited by real-world networks. Using four different network data sets, we empirically test our model and show that it fits well the observed networks.

  • 20. Liu, Xiaodong
    et al.
    Patacchini, Eleonora
    Zenou, Yves
    Stockholm University, Faculty of Social Sciences, Department of Economics. Research Institute of Industrial Economics (IFN), Sweden.
    Endogenous peer effects: local aggregate or local average?2014In: Journal of Economic Behavior and Organization, ISSN 0167-2681, E-ISSN 1879-1751, Vol. 103, p. 39-59Article in journal (Refereed)
    Abstract [en]

    We develop a unified model embedding different behavioral mechanisms of social interactions and design a statistical model selection test to differentiate between them in empirical applications. This framework is applied to study peer effects in education (effort in studying) and sport activities for adolescents in the United States. We find that, for education, students tend to conform to the social norm of their friends while, for sport activities, both the social multiplier and the social norm effect matter.

  • 21. Patacchini, Eleonora
    et al.
    Ragusa, Giuseppe
    Zenou, Yves
    Stockholm University, Faculty of Social Sciences, Department of Economics.
    Exploratory Analysis for Europe: Religion and Physical Appearance2015In: Unexplored Dimensions of Discrimination / [ed] Tito Boeri, Eleonora Patacchini, Giovanni Peri, Oxford University Press, 2015, p. 147-243Chapter in book (Refereed)
    Abstract [en]

    Using the available cross-country data for Europe, this chapter provides novel evidence on the employment and labor market participation rates of underweight and overweight people as well as people belonging to different religious groups. In particular, it uses the International Social Survey Program (ISSP) to investigate the relationship between religion and labor-market outcomes, and the European Community Household Panel and the European Union Statistics on Income and Living Conditions to study the relationship between obesity and labor-market outcomes. This chapter also discusses the labor market and anti-discrimination policies that have been implemented in the different European countries.

  • 22. Patacchini, Eleonora
    et al.
    Ragusa, Giuseppe
    Zenou, Yves
    Stockholm University, Faculty of Social Sciences, Department of Economics.
    Unexplored dimensions of discrimination in Europe: homosexuality and physical appearance2015In: Journal of Population Economics, ISSN 0933-1433, E-ISSN 1432-1475, Vol. 28, no 4, p. 1045-1073Article in journal (Refereed)
    Abstract [en]

    We study labor-market discrimination of individuals with specific characteristics in Italy. We conduct a field experiment in two Italian cities: Rome and Milan, by sending fake CVs to real ads. We find that there is a strong penalty for homosexuals, i.e., about 30 % less chance to be called back compared to a heterosexual male and even more so if they are highly skilled. On the other hand, we find no penalty for homosexual females. We also find a beauty premium for females only but this premium is much lower when the pretty woman is skilled.

  • 23. Patacchini, Eleonora
    et al.
    Zenou, Yves
    Stockholm University, Faculty of Social Sciences, Department of Economics. CEPR, United Kingdom; IFN, Sweden; GAINS, France.
    Ethnic networks and employment outcomes2012In: Regional Science and Urban Economics, ISSN 0166-0462, E-ISSN 1879-2308, Vol. 42, no 6, p. 938-949Article in journal (Refereed)
    Abstract [en]

    This paper explores the relationship between residential proximity of individuals from the same ethnic group and the probability of finding a job through social networks, relative to other search methods. Using individual-level data from the UK Labour Force survey and spatial statistics techniques, we find that (i) the higher is the percentage of a given ethnic group living nearby, the higher is the probability of finding a job through social contacts; (ii) this effect decays very rapidly with distance. The magnitude, statistical significance and spatial decay of such an effect differ depending on the ethnic group considered. We provide an interpretation of our findings using the network model of Calvó-Armengol and Jackson (2004).

  • 24. Patacchini, Eleonora
    et al.
    Zenou, Yves
    Stockholm University, Faculty of Social Sciences, Department of Economics.
    NEIGHBORHOOD EFFECTS AND PARENTAL INVOLVEMENT IN THE INTERGENERATIONAL TRANSMISSION OF EDUCATION*2011In: Journal of regional science, ISSN 0022-4146, E-ISSN 1467-9787, Vol. 51, no 5, p. 987-1013Article in journal (Refereed)
    Abstract [en]

    We analyze the intergenerational transmission of education focusing on the interplay between family and neighborhood effects. We develop a theoretical model suggesting that both neighborhood quality and parental effort are of importance for the education attained by children. This model proposes a mechanism explaining why and how they are of importance, distinguishing between high- and low-educated parents. We then bring this model to the data using a longitudinal dataset in Britain. The available information on social housing in big cities allows us to identify the role of neighborhood in educational outcomes. We find that the better the quality of the neighborhood, the higher is the parents' involvement in their children's education. A novel finding with respect to previous U.S. studies is that family is of importance for children with highly educated parents while it is the community that is crucial for the educational achievement of children from low-educated families.

  • 25. Patacchini, Eleonora
    et al.
    Zenou, Yves
    Stockholm University, Faculty of Social Sciences, Department of Economics. Research Institute of Industrial Economics (IFN), Sweden; CEPR, UK; IZA, Germany.
    Racial identity and education in social networks2016In: Social Networks, ISSN 0378-8733, E-ISSN 1879-2111, Vol. 44, p. 85-94Article in journal (Refereed)
    Abstract [en]

    We investigate identity issues to explain differences in school performance between students of different races. Using a unique dataset of friendship relationships between students in the US, we show that friendship formation can be taken as a measure of racial identity. We then find that having a higher percentage of same-race friends is associated with higher test scores for white teenagers and with lower test scores for blacks. However, the higher is the education level of a black teenager's parents, the lower is this negative association, while for whites, it is the reverse. It is thus the combination of choice of friends and parents' education that seems to be an important factor in shaping differences in school performance between students of different races but also between students of the same race.

  • 26. Patacchini, Eleonora
    et al.
    Zenou, Yves
    Stockholm University, Faculty of Social Sciences, Department of Economics.
    Urban Crime and Ethnicity2012In: Review of Network Economics, ISSN 1446-9022, E-ISSN 1446-9022, Vol. 11, no 3, p. 11-Article in journal (Refereed)
    Abstract [en]

    Using spatial data analysis techniques, we compare the spatial distribution of crime and the black population density across the London boroughs. We show that the higher is the density of the black population in a given borough, the higher is the crime rate. This effect is still positive but lower for neighboring boroughs and ceases to exist beyond a 40 minute driving distance. Such results are consistent with models of social interactions where relationships are stronger between individuals of the same ethnic group and highly localized.

  • 27. Pattacchini, Eleonora
    et al.
    Zenou, Yves
    Stockholm University, Faculty of Social Sciences, Department of Economics.
    Intergenerational Education Transmission: neighborhood Quality and/or Parents’ involvement?2011In: Journal of regional science, ISSN 0022-4146, E-ISSN 1467-9787, Vol. 51, no 5, p. 987-1013Article in journal (Refereed)
  • 28. Saez-Marti, Maria
    et al.
    Zenou, Yves
    Stockholm University, Faculty of Social Sciences, Department of Economics.
    Cultural transmission and discrimination2012In: Journal of Urban Economics, ISSN 0094-1190, E-ISSN 1095-9068, Vol. 72, no 2-3, p. 137-146Article in journal (Refereed)
    Abstract [en]

    Workers can have good or bad work habits. These traits are transmitted from one generation to the next through a learning and imitation process, which depends on parents' investment in the trait and the social environment where children live. If a sufficiently high proportion of employers have taste-based prejudices against minority workers, we show that their prejudices are always self-fulfilled in steady state and minority workers end up having, on average, worse work habits than majority workers. This leads to a ghetto culture. Affirmative Action can improve the welfare of minorities whereas integration can be beneficial to minority workers but detrimental to workers from the majority group.

  • 29. Sato, Yasuhiro
    et al.
    Zenou, Yves
    Stockholm University, Faculty of Social Sciences, Department of Economics. CEPR Centre for Economic Policy Research, United Kingdom.
    How urbanization affect employment and social interactions2015In: European Economic Review, ISSN 0014-2921, E-ISSN 1873-572X, Vol. 75, p. 131-155Article in journal (Refereed)
    Abstract [en]

    We develop a model where the unemployed workers in the city can find a job either directly or through weak or strong ties. We show that, in denser areas, individuals choose to interact with more people and meet more random encounters (weak ties) than in sparsely populated areas. We also demonstrate that, for a low urbanization level, there is a unique steady-state equilibrium where workers do not interact with weak ties, while, for a high level of urbanization, there is a unique steady-state equilibrium with full social interactions. We show that these equilibria are usually not socially efficient when the urban population has an intermediate size because there are too few social interactions compared to the social optimum. Finally, even when social interactions are optimal, we show that there is over-urbanization in equilibrium.

  • 30. Song, Yan
    et al.
    Zenou, Yves
    Stockholm University, Faculty of Social Sciences, Department of Economics.
    How do differences in property taxes within cities affect urban sprawl ?2009In: Journal of regional science, ISSN 0022-4146, E-ISSN 1467-9787, Vol. 49, no 5, p. 801-831Article in journal (Refereed)
    Abstract [en]

    We develop a duocentric-city model and show that the ratio between the property tax in the suburbs and in the center has an ambiguous impact on the size of the city. We test this model by using a dataset of effective property tax rates which we developed using GIS techniques for central cities and suburbs in 445 urbanized areas. Results from the empirical analyses suggest that a lower property tax rate in the suburbs as compared to the central city is associated with more expansive urban growth and a greater level of decentralization of population and employment.

  • 31. Song, Yan
    et al.
    Zenou, Yves
    Stockholm University, Faculty of Social Sciences, Department of Economics.
    Urban villages and housing values in China2012In: Regional Science and Urban Economics, ISSN 0166-0462, E-ISSN 1879-2308, Vol. 42, no 3, p. 495-505Article in journal (Refereed)
    Abstract [en]

    The presence of urban villages is a unique product of China's urbanization. In this article, we explore the effects of urban villages on the formal housing market. For this purpose, we develop a hedonic housing price model to investigate whether the proximity to urban villages affects the selling price of urban housing units. Controlling for the structure and other characteristics of urban housing units, we find that housing prices are lower the closer the buildings are from urban villages. We then carry out a survey of households living nearby and explore how they are affected by urban villages. The results indicate that there are both positive and negative effects associated with these villages.

  • 32. Topa, Giorgio
    et al.
    Zenou, Yves
    Stockholm University, Faculty of Social Sciences, Department of Economics. The Research Institute of Industrial Economics (IFN), Sweden; CEPR, United Kingdom.
    Neighbourhood and network effects2015In: Handbook of Regional and Urban Economics / [ed] Gilles Duranton, J. Vernon Henderson, William C. Strange, Elsevier, 2015, p. 561-624Chapter in book (Refereed)
    Abstract [en]

    In this chapter, we provide an overview of research on neighborhoods and social networks and their role in shaping behavior and economic outcomes. We include a discussion of empirical and theoretical analyses of the role of neighborhoods and social networks in crime, education, and labor-market outcomes. In particular, we discuss in detail identification problems in peer, neighborhood, and network effects and the policy implications of integrating the social and the geographical space, especially for ethnic minorities.

  • 33. Verdier, Thierry
    et al.
    Zenou, Yves
    Stockholm University, Faculty of Social Sciences, Department of Economics. Research Institute of Industrial Economics (IFN), Sweden; CEPR, United Kingdom.
    The role of cultural leaders in the transmission of preferences2015In: Economics Letters, ISSN 0165-1765, E-ISSN 1873-7374, Vol. 136, p. 158-161Article in journal (Refereed)
    Abstract [en]

    This paper studies the population dynamics of preference traits in a model of intergenerational cultural transmission with cultural leaders who compete for oblique socialization. We show that by adding this new channel in the transmission of preferences, i.e. cultural leaders, in steady-state, there cannot be an equilibrium with total assimilation or total integration of the population.

  • 34. Wahba, Jackline
    et al.
    Zenou, Yves
    Stockholm University, Faculty of Social Sciences, Department of Economics.
    Out of sight, out of mind: migration, entrepreneurship and social capital2012In: Regional Science and Urban Economics, ISSN 0166-0462, E-ISSN 1879-2308, Vol. 42, no 5, p. 890-903Article in journal (Refereed)
    Abstract [en]

    The aim of this paper is to investigate whether return migrants are more likely to become entrepreneurs than non-migrants. We develop a theoretical search model that puts forward the trade off faced by returnees since overseas migration provides an opportunity for human and physical capital accumulation but, at the same time, may lead to a loss of social capital back home. We test the predictions of the model using data from Egypt. We find that, even after controlling for the endogeneity of the temporary migration decision, an overseas returnee is more likely to become an entrepreneur than a non-migrant. Although migrants may lose their social capital, they accumulate savings and experience overseas that increase their chances of becoming entrepreneurs.

  • 35.
    Zenou, Yves
    Stockholm University, Faculty of Social Sciences, Department of Economics. IFN, Germany; GAINS, Germany.
    A Dynamic Model of Weak and Strong Ties in the Labor Market2015In: Journal Labor Economics, ISSN 0734-306X, E-ISSN 1537-5307, Vol. 33, no 4, p. 891-932Article in journal (Refereed)
    Abstract [en]

    The study develops a simple model where workers can obtain a job through either their strong or weak ties. It shows that increasing the time spent with weak ties raises the employment rate of workers. It also shows that when the job-destruction rate or the job-information rate increases, workers choose to relymore on their weak ties to find a job. The model is extended so unemployed workers can also learn of a vacancy directly from an employer. Results show that equilibrium employment and time spent with weak ties are sometimes, but not in all cases, positively related.

  • 36.
    Zenou, Yves
    Stockholm University, Faculty of Social Sciences, Department of Economics.
    Crime and the City2008In: The New Palgrave, A Dictionary of Economics, Second Edition, 2008Chapter in book (Other academic)
  • 37.
    Zenou, Yves
    Stockholm University, Faculty of Social Sciences, Department of Economics.
    Efficiency Wages and Unemployment in Cities: The Case of High Relocation Costs2006In: Regional Science and Urban Economics, Vol. 36, p. 49-71Article in journal (Refereed)
  • 38.
    Zenou, Yves
    Stockholm University, Faculty of Social Sciences, Department of Economics.
    Endogenous Job Destruction and Job Matching in Cities2009In: Journal of Urban Economics, ISSN 0094-1190, E-ISSN 1095-9068, Vol. 65, no 3, p. 323-336Article in journal (Refereed)
    Abstract [en]

    We propose a spatial search-matching model where both job creation and job destruction are endogenous. Workers are ex ante identical but not ex post since their jobs can be hit by a technological shock which decreases their productivity. They reside in a city, and commuting to the job center involves both pecuniary and time costs. As a result, workers with high wages are willing to live closer to jobs to save on time commuting costs. We show that, in equilibrium, there is a one-to-one correspondence between the productivity space and the urban location space. Workers with high productivities and wages reside close to jobs, have low per distance commuting costs and pay high land rents. We also show that higher per distance commuting costs and higher unemployment benefits lead to more job destruction.

  • 39.
    Zenou, Yves
    Stockholm University, Faculty of Social Sciences, Department of Economics.
    From Neighborhoods to Nations: The Economics of Social Interactions2013In: Journal of Economic Geography, ISSN 1468-2702, E-ISSN 1468-2710, Vol. 13, no 4, p. 706-710Article in journal (Refereed)
  • 40.
    Zenou, Yves
    Stockholm University, Faculty of Social Sciences, Department of Economics.
    High-Relocation Costs in Search-Matching Models. Theory and Application to Spatial Mismatch2009In: Labour Economics, ISSN 0927-5371, E-ISSN 1879-1034, Vol. 16, no 5, p. 534-546Article in journal (Refereed)
    Abstract [en]

    We develop a standard search-matching model in which mobility costs are so high that it is

    too costly for workers to relocate when a change in their employment status occurs. We show

    that, in equilibrium, wages increase with distance to jobs and commuting costs because firms

    need to compensate the transportation cost difference between the employed and

    unemployed workers at each location in the city. We also show that the equilibrium land rent

    is negatively affected by the unemployment benefit because an increase in the latter induce

    firms to create less jobs, which, in turn, reduces the competition in the land market. We then

    use this model to provide a mechanism for the observed spatial mismatch between where

    black workers live and where jobs are. Because blacks and whites differ by their contact rate,

    we show that the former reside far away from jobs, have higher unemployment rates and

    lower wages. This is because the housing market amplifies the negative effects of the labor

    market by creating additional frictions.

  • 41.
    Zenou, Yves
    Stockholm University, Faculty of Social Sciences, Department of Economics.
    Housing Policies in China: issues and Options2012In: Regional Science Policy & Practice, E-ISSN 1757-7802, Vol. 4, no 4, p. 393-417Article in journal (Refereed)
  • 42.
    Zenou, Yves
    Stockholm University, Faculty of Social Sciences, Department of Economics.
    How Common is Integration Policy in Europe?2009In: How Unified is the European Union:  European integration between visions and popular legitimacy / [ed] Sverker Gustavsson, Lars Oxelheim, Lars Pehrson, Dordrecht: Springer Verlag , 2009Chapter in book (Other academic)
  • 43.
    Zenou, Yves
    Stockholm University, Faculty of Social Sciences, Department of Economics.
    Job Search and Mobility in Developing Countries. Theory and Policy Implications2008In: Journal of Development EconomicsArticle in journal (Refereed)
  • 44.
    Zenou, Yves
    Stockholm University, Faculty of Social Sciences, Department of Economics.
    Networks in economics2015In: International Encyclopedia of Social and Behavioral Sciences / [ed] James D. Wright, Amsterdam: Elsevier, 2015, 2, p. 572-581Chapter in book (Other academic)
  • 45.
    Zenou, Yves
    Stockholm University, Faculty of Social Sciences, Department of Economics.
    Nystartszoner: den ekonomiska synvinkel2012In: Från utsatt till utmärkt område: bortom ekonomiska frizoner / [ed] Andreas Bergh, Stockholm: FORES , 2012, 1, p. 25-37Chapter in book (Other academic)
  • 46.
    Zenou, Yves
    Stockholm University, Faculty of Social Sciences, Department of Economics.
    Rural-urban Migration and Unemployment: Theory and Policy Implications2011In: Journal of regional science, ISSN 0022-4146, E-ISSN 1467-9787, Vol. 51, no 1, p. 65-82Article in journal (Refereed)
    Abstract [en]

    We develop a regional model where, in the city, unemployment prevails because of too high (efficiency) wages, while, in the rural area, workers are paid at their marginal productivity. We characterize the steady-state equilibrium and show that it is unique. We then consider two policies: decreasing urban unemployment benefits and subsidizing urban employment. We find that decreasing the unemployment benefit in the city creates urban jobs and reduces rural-urban migration since new migrants have to spend some time unemployed before they can find a job in the city. On the other hand, raising employment subsidies increases urban employment but may also increase urban unemployment because it triggers more rural-urban migration. In this respect, the employment subsidy policy can backfire by raising rather than reducing urban unemployment.

  • 47.
    Zenou, Yves
    Stockholm University, Faculty of Social Sciences, Department of Economics.
    Search in Cities2009In: European Economic Review, ISSN 0014-2921, E-ISSN 1873-572X, Vol. 53, no 6, p. 607-624Article in journal (Refereed)
    Abstract [en]

    The aim of this paper is to expose the recent developments of urban search models which incorporate a land market into a search-matching framework. Using these models, we will be able to explain why unemployment rates vary within a city, how city structure affects workers’ labor-market outcomes, how unemployment benefits and the job-destruction rate affect the growth of cities and why workers living far away from job centers search less intensively and experience higher unemployment rates than those residing closer to jobs. We are also able to explain why, as compared to whites, black workers spend more time commuting to work but travel less miles and search for jobs over a smaller area.

  • 48.
    Zenou, Yves
    Stockholm University, Faculty of Social Sciences, Department of Economics.
    Search, migration, and urban land use: The case of transportation policies2011In: Journal of Development Economics, ISSN 0304-3878, E-ISSN 1872-6089, Vol. 96, no 2, p. 174-187Article in journal (Refereed)
    Abstract [en]

    We develop a search-matching model with rural-urban migration and an explicit land market. Wages, job creation, urban housing prices are endogenous and we characterize the steady-state equilibrium. We then consider three different policies: a transportation policy that improves the public transport system in the city, an entry-cost policy that encourages investment in the city and a restricting-migration policy that imposes some costs on migrants. We show that all these policies can increase urban employment but the transportation policy has much more drastic effects. This is because a decrease in commuting costs has both a direct positive effect on land rents, which discourages migrants to move to the city, and a direct negative effect on urban wages, which reduces job creation and thus migration. When these two effects are combined with search frictions, the interactions between the land and the labor markets have amplifying positive effects on urban employment. Thus, improving the transport infrastructure in cities can increase urban employment despite the induced migration from rural areas.

  • 49.
    Zenou, Yves
    Stockholm University, Faculty of Social Sciences, Department of Economics.
    Search, Wage Posting, and Urban Spatial Structure2011In: Journal of Economic Geography, ISSN 1468-2702, E-ISSN 1468-2710, Vol. 11, no 3, p. 387-416Article in journal (Refereed)
    Abstract [en]

    We develop an urban-search model in which firms post wages. When all workers are identical, there is a unique wage in equilibrium even in the presence of search and spatial frictions. This wage is affected by spatial and labor costs. When workers differ according to the value imputed to leisure, we show that, under some conditions, two wages emerge in equilibrium. The commuting cost not only affects the land market but also the labor market through wages. Workers' productivity also affects housing prices and this impact can be positive or negative depending on the location in the city. We then run some numerical simulations to reproduce some stylized facts about the labor-market outcomes of black and white workers. We find that a reduction in commuting costs for all workers reduces the unemployment rate of white workers and the profit of all firms but increases the wage of all workers (black and white) and raises the fraction of firms posting the high wage.

  • 50.
    Zenou, Yves
    Stockholm University, Faculty of Social Sciences, Department of Economics. Université du Maine, France.
    Social Interactions and the Labor Market2013In: Revue d' Economie politique, ISSN 0373-2630, E-ISSN 2105-2883, Vol. 123, no 3, p. 307-331Article in journal (Refereed)
    Abstract [en]

    To better understand the way social networks operate in the labor market, we propose two simple models where individuals help each other finding a job. In the first one, job information flows between individuals having a link with each other and we show that an equilibrium with a clustering of workers with the same status is likely to emerge since, in the long run, employed workers tend to be friends with employed workers. In the second model, individuals interact with both strong and weak ties and decide how much time they spend with each of them. As in Granovetter, this model stresses the strength of weak ties in finding a job because they involve a secondary ring of acquaintances who have contacts with networks outside ego's network and therefore offer new sources of information on job opportunities. We then discuss some policy implications showing how these models can explain why ethnic minorities tend to experience higher unemployment rate than workers from the majority group.

12 1 - 50 of 84
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