0156074 - NHU-N 20033012 RIV US eng J - Journal Article
Jeong, Byeongju
The welfare effects of mobility restrictions.
Review of Economic Dynamics. Roč. 6, č. 3 (2003), s. 685-696. ISSN 1094-2025. E-ISSN 1096-6099
Institutional research plan: CEZ:AV0Z7085904
Keywords : mobility restriction * partnership * search
Subject RIV: AH - Economics
Impact factor: 0.600, year: 2003
DOI: https://doi.org/10.1016/S1094-2025(03)00015-2

Mobility restrictions (e.g., severance payment, life-long tenure, and divorce ban) are widely observed. I present a partnership model that highlights the 'break-up externality' (i.e., the negative effect of a person's break-up decision on his current partner). Under this externality, there is too much searching for new partners and too much breaking-up of existing partnerships. Restrictions such as a break-up payment and break-up ban can reduce the levels of searching and breaking-up and improve welfare. Thus the paper rationalizes mobility restrictions as welfare-improving arrangements.
Permanent Link: http://hdl.handle.net/11104/0053541