Policies to address spatial mismatch

Spatial mismatch between workers and jobs is of policy concern for two reasons. First, labour surpluses in some locations contribute to labour market disadvantage. Second, other locations may experience labour shortages which restrict economic growth. Spatial mismatch usually refers to mismatches within metropolitan areas in developed countries. Four broad policy responses have been identified in the literature: (1) promote economic regeneration in central/inner-city locations; (2) encourage residential mobility; (3) improve transportation; and (4) enhance job search. This article reviews the main policy responses to spatial mismatch, mainly in the United Kingdom and the United States. © 2012