Linking Space and Labor Markets: Towards an Alternative Conceptualization of Labor Market Behavior

The objective of this paper is to explore a supplementary explanation of labor market behavior based on spatial perceptions. Along with existing labor market constructs, this can contribute, to a more encompassing explanation of labor behavior. Interviews were conducted among a nation-wide representative sample of employed Israelis in order to elicit how they define and choose labor markets. Multivariate analyses of the findings revealed that spatial perceptions of labor markets exist, are perceived in terms of multi-dimensional entities, and are demographically specific. Such a diversity of perceptions leads to different definitions of labor market boundaries and, thus, to possible entry constraints. We argue that these spatially derived perceptions can have a crucial impact on potential labor behavior and may help explain labor market formation.