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Household location and income: a spatial analysis for British cities

Author

Listed:
  • David Cuberes

    (Clark University)

  • Jennifer Roberts

    (Department of Economics, University of Sheffield)

Abstract

Using information on the exact location of urban households in Britain for the period 2009-2013 we explore the validity of standard urban land use models by estimating the extent to which distance of residence from the city centre is a function of income. This is the first study of its kind for British cities. After controlling for household characteristics and access to transport, as well as city and time effects, and taking account of both spatial and serial correlation, we find a strong positive association between household’s income and distance from the city centre. We also estimate the income elasticity of demand for land and find that this is not large enough to support the view that richer households locate further from the city centre mainly because they prefer larger dwellings. Finally, we find that while poorer households live closer to the city centre, they have experienced increasing real incomes over the period relative to those who live further away. This supports the view that cities in Britain attract poor people rather than generate poverty.

Suggested Citation

  • David Cuberes & Jennifer Roberts, 2015. "Household location and income: a spatial analysis for British cities," Working Papers 2015022, The University of Sheffield, Department of Economics.
    • Handle: RePEc:shf:wpaper:2015022
    as

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    File URL: http://www.sheffield.ac.uk/economics/research/serps/articles/2015_022
    File Function: First version, October 2015
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    References listed on IDEAS

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    Blog mentions

    As found by EconAcademics.org, the blog aggregator for Economics research:
    1. Cities' households geographic distributions
      by Inaki Villanueva in Applied economist on 2016-02-14 14:00:00

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    Cited by:

    1. Tabuchi, Takatoshi, 2023. "Backward-bending labor supply and urban location," Regional Science and Urban Economics, Elsevier, vol. 102(C).
    2. Tabuchi, Takatoshi, 2019. "Do the rich and poor colocate in large cities?," Journal of Urban Economics, Elsevier, vol. 113(C).
    3. Mariya Letdin & Hyoung S. Shim, 2019. "Location choice, life cycle and amenities," Journal of Regional Science, Wiley Blackwell, vol. 59(3), pages 567-585, June.
    4. Meng Le Zhang & Gwilym Pryce, 2020. "The dynamics of poverty, employment and access to amenities in polycentric cities: Measuring the decentralisation of poverty and its impacts in England and Wales," Urban Studies, Urban Studies Journal Limited, vol. 57(10), pages 2015-2030, August.
    5. TABUCHI Takatoshi, 2018. "Where Do the Rich Live in a Big City?," Discussion papers 18020, Research Institute of Economy, Trade and Industry (RIETI).

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    More about this item

    Keywords

    urban poverty; cities; segregation by income;
    All these keywords.

    JEL classification:

    • I32 - Health, Education, and Welfare - - Welfare, Well-Being, and Poverty - - - Measurement and Analysis of Poverty
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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