Wages, rents, unemployment, and the quality of life
AbstractCombining a spatial equilibrium model with a matching unemployment model, this paper analyzes the regional quality of life when wages, rents, and unemployment risk compensate for local amenities and disamenities. In particular, the paper shows for quasi-linear utility that the effects of any amenity on wages and unemployment rates are of opposite sign. Additionally, the wage rate and the labor market tightness increase and the unemployment ratio decreases in reaction to an increase in the level of an amenity if the amenity is marginally more beneficial to producers than to consumers per unit of land. Based on the model, quality of life of the unemployed in West German counties is estimated. --
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Bibliographic InfoPaper provided by Friedrich-Alexander-Universität Erlangen-Nürnberg, Institut für Wirtschaftspolitik und Quantitative Wirtschaftsforschung (IWQW) in its series IWQW Discussion Paper Series with number 01/2012.
Date of creation: 2012
Date of revision:
quality of life; unemployment; matching; mobility;
Other versions of this item:
- Matthias Wrede, 2012. "Wages, Rents, Unemployment, and the Quality of Life," CESifo Working Paper Series 3803, CESifo Group Munich.
- Wrede, Matthias, 2012. "Wages, rents, unemployment, and the quality of life," IWQW Discussion Paper Series 01/2012 [rev.], Friedrich-Alexander-Universität Erlangen-Nürnberg, Institut für Wirtschaftspolitik und Quantitative Wirtschaftsforschung (IWQW).
- Wrede, Matthias, 2012. "Wages, Rents, Unemployment, and the Quality of Life," Annual Conference 2012 (Goettingen): New Approaches and Challenges for the Labor Market of the 21st Century 62034, Verein für Socialpolitik / German Economic Association.
- R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
- R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
- R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
- H22 - Public Economics - - Taxation, Subsidies, and Revenue - - - Incidence
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-02-20 (All new papers)
- NEP-DGE-2012-02-20 (Dynamic General Equilibrium)
- NEP-GEO-2012-02-20 (Economic Geography)
- NEP-LAB-2012-02-20 (Labour Economics)
- NEP-URE-2012-02-20 (Urban & Real Estate Economics)
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
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