Wages, rents, unemployment, and the quality of life
AbstractCombining a spatial equilibrium model with a search-matching unemployment model, this paper analyzes the willingness to pay for regional amenities and the regional quality of life when wages, rents, and unemployment risk compensate for local amenities and disamenities. The results are compared with those obtained from the Rosen-Roback approach. Furthermore, the paper shows that the wage curve is negatively sloped for quasi-linear utility. Specifically, the wage rate increases and the unemployment ratio decreases in response to an increase in the amenity level if the amenity is marginally more beneficial to producers than to consumers. As an illustration of the unemployment-adjusted quality-of-life measure, the quality of life 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 [rev.].
Date of creation: 2012
Date of revision:
quality of life; residential mobility; unemployment; job search; matching;
Other versions of this item:
- 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.
- Wrede, Matthias, 2012. "Wages, rents, unemployment, and the quality of life," IWQW Discussion Paper Series 01/2012, Friedrich-Alexander-Universität Erlangen-Nürnberg, Institut für Wirtschaftspolitik und Quantitative Wirtschaftsforschung (IWQW).
- Matthias Wrede, 2012. "Wages, Rents, Unemployment, and the Quality of Life," CESifo Working Paper Series 3803, CESifo Group Munich.
- Matthias Wrede, 2013. "Wages, Rents, Unemployment, and the Quality of Life," ERSA conference papers ersa13p548, European Regional Science 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
- H73 - Public Economics - - State and Local Government; Intergovernmental Relations - - - Interjurisdictional Differentials and Their Effects
- J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
- J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search
This paper has been announced in the following NEP Reports:
- NEP-ALL-2012-07-14 (All new papers)
- NEP-DGE-2012-07-14 (Dynamic General Equilibrium)
- NEP-GEO-2012-07-14 (Economic Geography)
- NEP-HAP-2012-07-14 (Economics of Happiness)
- NEP-LAB-2012-07-14 (Labour Economics)
- NEP-URE-2012-07-14 (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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