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Migration costs, commuting costs and intercity population sorting

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  • Sorek, Gilad

Abstract

We study the effects of reducing intercity commuting time on urbanization process -- from Suburb to Metropolis -- that is driven by a technological advantage held by the Metropolis. In each period, a new generation of workers that are heterogeneous with respect to ability is born. Workers can migrate and commute to work between the cities at given migration cost, commuting costs, and commuting time. In equilibrium migration is unidirectional, where the migrants are the most able workers of the Suburb. Suburb workers with moderate ability commute to work in the Metropolis and the least able work in the Suburb. We show that reducing commuting time can moderate, stop, or reverse the migration process. In the latter case the economy switches from a growing to a declining path of aggregate and per-capita output. Yet, for low commuting cost, reducing commuting time always increases long-term total production. Nevertheless, workers who reside and work in the Suburb suffer from commuting-time reduction due to increase in the Suburb's housing price, while all other workers in the economy gain.

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Bibliographic Info

Article provided by Elsevier in its journal Regional Science and Urban Economics.

Volume (Year): 39 (2009)
Issue (Month): 4 (July)
Pages: 377-385

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Handle: RePEc:eee:regeco:v:39:y:2009:i:4:p:377-385

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Related research

Keywords: Urbanization Intercity commuting Intercity migration;

References

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  1. Zenou, Y. & Smith, T. E., . "Efficiency wages, involuntary unemployment and urban spatial structure," CORE Discussion Papers RP -1171, Université catholique de Louvain, Center for Operations Research and Econometrics (CORE).
  2. Giannetti, Mariassunta, 2003. "On the mechanics of migration decisions: skill complementarities and endogenous price differentials," Journal of Development Economics, Elsevier, vol. 71(2), pages 329-349, August.
  3. Alex Anas & Kai Xiong, 2003. "Intercity Trade and the Industrial Diversification of Cities," Urban/Regional 0302003, EconWPA.
  4. Murata, Yasusada & Thisse, Jacques-Francois, 2005. "A simple model of economic geography a la Helpman-Tabuchi," Journal of Urban Economics, Elsevier, vol. 58(1), pages 137-155, July.
  5. Paul Krugman, 1990. "Increasing Returns and Economic Geography," NBER Working Papers 3275, National Bureau of Economic Research, Inc.
  6. Tabuchi, Takatoshi, 1998. "Urban Agglomeration and Dispersion: A Synthesis of Alonso and Krugman," Journal of Urban Economics, Elsevier, vol. 44(3), pages 333-351, November.
  7. Nathaniel Baum-Snow, 2007. "Did Highways Cause Suburbanization?," The Quarterly Journal of Economics, MIT Press, vol. 122(2), pages 775-805, 05.
  8. Ogura, Laudo M., 2005. "Urban growth controls and intercity commuting," Journal of Urban Economics, Elsevier, vol. 57(3), pages 371-390, May.
  9. Wrede, Matthias, 2001. "Should Commuting Expenses Be Tax Deductible? A Welfare Analysis," Journal of Urban Economics, Elsevier, vol. 49(1), pages 80-99, January.
  10. Pinto, Santiago M., 2002. "Residential Choice, Mobility, and the Labor Market," Journal of Urban Economics, Elsevier, vol. 51(3), pages 469-496, May.
  11. Suh, Seoung Hwan, 1988. "The possibility and impossibility of intercity commuting," Journal of Urban Economics, Elsevier, vol. 23(1), pages 86-100, January.
  12. Baum-Snow, Nathaniel, 2007. "Suburbanization and transportation in the monocentric model," Journal of Urban Economics, Elsevier, vol. 62(3), pages 405-423, November.
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Cited by:
  1. Woohyung Lee & Byeongho Choe, 2012. "Agglomeration effect and tax competition in the metropolitan area," The Annals of Regional Science, Springer, vol. 49(3), pages 789-803, December.

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