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Dual Earners, Urban Labor Markets and Housing Demand

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  • Jan Rouwendal

    ()
    (Wageningen University and Vrije Universiteit Amsterdam)

  • Willemijn van der Straaten

    ()
    (Wageningen University)

Abstract

This paper replicates Costa and Kahn's analysis of locational choices of couples of highly educated persons for the Netherlands. We find increasing concentration of such power couples in the urbanized western part of the country. This trend occurs in spite of the absence of an urban wage premium for university-educated workers and the concentration of congestion there. We find that power couples locate more often in medium sized and larger cities than otherwise comparable households and that they are relatively often owner-occupiers and live in more expensive housing. Their commutes are relatively short when it is taken into account that it is more difficult for these households to find suitable combinations of employment and residence locations than it is for single earner households. A probable explanation for these findings is that power couples use their relatively large purchasing power to outbid other households from locations that are especially attractive t!o them, as is predicted by household location theory.

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Bibliographic Info

Paper provided by Tinbergen Institute in its series Tinbergen Institute Discussion Papers with number 03-084/3.

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Date of creation: 14 Oct 2003
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Handle: RePEc:dgr:uvatin:20030084

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Related research

Keywords: dual earner households; power couples; urban wages; location choice; commuting distance; housing demand;

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References

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  1. Barbara Petrongolo & Christopher A. Pissarides, 2003. "Scale Effects in Markets with Search," CEP Discussion Papers, Centre for Economic Performance, LSE dp0571, Centre for Economic Performance, LSE.
  2. Wheaton, William C, 1977. "Income and Urban Residence: An Analysis of Consumer Demand for Location," American Economic Review, American Economic Association, American Economic Association, vol. 67(4), pages 620-31, September.
  3. Glaeser, Edward L., 1999. "Learning in Cities," Journal of Urban Economics, Elsevier, vol. 46(2), pages 254-277, September.
  4. Gautier, P.A. & Teulings, C.N., 2009. "Search and the city," Regional Science and Urban Economics, Elsevier, Elsevier, vol. 39(3), pages 251-265, May.
  5. Coen N. Teulings & Pieter A. Gautier, 2004. "The Right Man for the Job," Review of Economic Studies, Oxford University Press, vol. 71(2), pages 553-580.
  6. Barbara Petrongolo & Christopher Pissarides, 2000. "Looking into the black box: a survey of the matching function," LSE Research Online Documents on Economics, London School of Economics and Political Science, LSE Library 2122, London School of Economics and Political Science, LSE Library.
  7. Edward L. Glaeser & Matthew E. Kahn & Jordan Rappaport, 2000. "Why Do The Poor Live In Cities?," Harvard Institute of Economic Research Working Papers, Harvard - Institute of Economic Research 1891, Harvard - Institute of Economic Research.
  8. Kim, Sunwoong, 1989. "Labor Specialization and the Extent of the Market," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 97(3), pages 692-705, June.
  9. Helsley, Robert W. & Strange, William C., 1990. "Matching and agglomeration economies in a system of cities," Regional Science and Urban Economics, Elsevier, Elsevier, vol. 20(2), pages 189-212, September.
  10. Frank, Robert H, 1978. "Family Location Constraints and the Geographic Distribution of Female Professionals," Journal of Political Economy, University of Chicago Press, University of Chicago Press, vol. 86(1), pages 117-30, February.
  11. Glaeser, Edward L & Mare, David C, 2001. "Cities and Skills," Journal of Labor Economics, University of Chicago Press, University of Chicago Press, vol. 19(2), pages 316-42, April.
  12. Coen N. Teulings & P.A. Gautier, 2002. "Search and the City," Tinbergen Institute Discussion Papers, Tinbergen Institute 02-061/3, Tinbergen Institute.
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Cited by:
  1. Stefan P.T. Groot & Henri L.F. de Groot & Paolo Veneri, 2012. "The Educational Bias in Commuting Patterns: Micro-Evidence for the Netherlands," Tinbergen Institute Discussion Papers, Tinbergen Institute 12-080/3, Tinbergen Institute.
  2. Willemijn Van Der Straaten & Jan Rouwendal, 2011. "Why are the commuting distances of power couples so short? An analysis of the location preferences of households," ERSA conference papers ersa10p816, European Regional Science Association.
  3. Mette Deding & Trine Filges & Jos Van Ommeren, 2005. "Spatial job and residential mobility - the case of two-earner households," ERSA conference papers ersa05p256, European Regional Science Association.

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