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adverse selection Appendix assume bid rents black workers caught shirking closer to jobs context decreasing density of workers deter shirking determined by firms Devaluations distance to jobs e(xb easily obtain efficiency wage model endogenously he/she implies Job search Journal of Urban labor demand Labor Economics labor market equilibrium land use equilibrium linear city live closer Lobbying location dependent longer commuting trips lose his/her job lower effort level monitoring moral hazard non-shirker Observe obtain a job optimal recruitment area outcomes Proof of Proposition random variable recruit workers recruitment area xb red line residential location residing closer result Shapiro and Stiglitz Smith 22 spatial mismatch hypothesis st N/M standard efficiency wage Stiglitz 15 Stochastic Processes strictly positive Sub-Saharan Africa suburbs unemployed unemployment benefit unemployment duration uniqne University of Southampton UNSC Urban Economics utility wages are higher worker located workers and firms workers is equal Zcnou