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Backward-bending Labor Supply and Urban Location

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  • Tabuchi, Takatoshi

Abstract

This paper is an attempt to combine a labor supply model with a housing location model. We focus on the trade-off between the hours of work, commute times and leisure time as well as the trade-off between the consumption of a good, housing space, and leisure time. We show that both labor supply and urban location choice are inverted U-shaped in relation to the wage rate. These results are empirically shown by using Japanese data on the hours of work and commute times by household income class and on the number of households by income class.

Suggested Citation

  • Tabuchi, Takatoshi, 2022. "Backward-bending Labor Supply and Urban Location," MPRA Paper 114810, University Library of Munich, Germany.
    • Handle: RePEc:pra:mprapa:114810
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    File URL: https://mpra.ub.uni-muenchen.de/114810/1/MPRA_paper_114810.pdf
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    References listed on IDEAS

    as
    1. Tabuchi, Takatoshi, 2019. "Do the rich and poor colocate in large cities?," Journal of Urban Economics, Elsevier, vol. 113(C).
    2. Fujita,Masahisa, 1991. "Urban Economic Theory," Cambridge Books, Cambridge University Press, number 9780521396455.
    3. Jo Thori Lind & Halvor Mehlum, 2010. "With or Without U? The Appropriate Test for a U‐Shaped Relationship," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 72(1), pages 109-118, February.
    4. Kuroda, Sachiko, 2010. "Do Japanese Work Shorter Hours than before? Measuring trends in market work and leisure using 1976-2006 Japanese time-use survey," Journal of the Japanese and International Economies, Elsevier, vol. 24(4), pages 481-502, December.
    5. Abe, Yukiko, 2011. "Family labor supply, commuting time, and residential decisions: The case of the Tokyo Metropolitan Area," Journal of Housing Economics, Elsevier, vol. 20(1), pages 49-63, March.
    6. Michael P. Keane, 2011. "Labor Supply and Taxes: A Survey," Journal of Economic Literature, American Economic Association, vol. 49(4), pages 961-1075, December.
    7. Shinichiro Iwata & Keiko Tamada, 2014. "The backward-bending commute times of married women with household responsibility," Transportation, Springer, vol. 41(2), pages 251-278, March.
    8. McFadden, Daniel, 1974. "The measurement of urban travel demand," Journal of Public Economics, Elsevier, vol. 3(4), pages 303-328, November.
    9. Barzel, Yoram & McDonald, Richard J, 1973. "Assets, Subsistence, and The Supply Curve of Labor," American Economic Review, American Economic Association, vol. 63(4), pages 621-633, September.
    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    labor supply; leisure time; residential location; U-shaped relationship;
    All these keywords.

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • 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

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