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Moving to density: Half a century of housing costs and wage premia from Queens to King Salmon

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  • Hoxie, Philip G.
  • Shoag, Daniel
  • Veuger, Stan

Abstract

Have workers stopped moving to the highest-density, highest-productivity places in the country because of a decline in the urban wage premium, or because the rent is too high? We analyze how important these two explanations are by studying them in one and the same empirical analysis. We find that non-college workers now effectively face a housing-inclusive urban wage penalty, while workers with college education continue to face a significant urban wage premium. We relate these findings to the share of native-born cross-state migrants across different parts of the country, and find that native-born cross-state migrants, especially non-college workers, have become less likely to live in the highest-productivity areas.

Suggested Citation

  • Hoxie, Philip G. & Shoag, Daniel & Veuger, Stan, 2023. "Moving to density: Half a century of housing costs and wage premia from Queens to King Salmon," Journal of Public Economics, Elsevier, vol. 222(C).
    • Handle: RePEc:eee:pubeco:v:222:y:2023:i:c:s0047272723000889
    DOI: 10.1016/j.jpubeco.2023.104906
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    More about this item

    Keywords

    Density; Housing; Migration; Skills; Wages;
    All these keywords.

    JEL classification:

    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity
    • J31 - Labor and Demographic Economics - - Wages, Compensation, and Labor Costs - - - Wage Level and Structure; Wage Differentials
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
    • R53 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Public Facility Location Analysis; Public Investment and Capital Stock

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