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Do preferences for urban amenities differ by skill?

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Listed:
  • Melanie Arntz
  • Eduard Brüll
  • Cäcilia Lipowski

Abstract

By investing in urban amenities, city-level policies often aim to attract highly skilled workers. However, studies relying on revealed preferences struggle to provide causal evidence that skilled workers value urban amenities more than less skilled workers. Therefore, we use a stated-preference experiment with hypothetical job choices between two cities that differ in wages, urban amenities and economic dynamism. We find that respondents are willing to forgo a significant fraction of their wages for better urban amenities. Most strikingly, preferences do not differ systematically by skill level. Hence, the higher fraction of highly skilled workers in amenity-rich places stems from the inability of low-skilled workers to move to and afford living in their preferred locations.

Suggested Citation

  • Melanie Arntz & Eduard Brüll & Cäcilia Lipowski, 2023. "Do preferences for urban amenities differ by skill?," Journal of Economic Geography, Oxford University Press, vol. 23(3), pages 541-576.
    • Handle: RePEc:oup:jecgeo:v:23:y:2023:i:3:p:541-576.
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    References listed on IDEAS

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    More about this item

    Keywords

    Urban amenities; choice experiment; skill selective migration; regional policy;
    All these keywords.

    JEL classification:

    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • C99 - Mathematical and Quantitative Methods - - Design of Experiments - - - Other
    • R58 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Regional Development Planning and Policy

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