Why are the commuting distances of power couples so short? An analysis of the location preferences of households
Couples of which both spouses are highly educated (so called â€šÃ„Ã²power couplesâ€šÃ„Ã´) face a more complex work-home relation than singles or single-earner households. However, the commuting time of power couples is relatively short. In this paper we analyze whether these power couples use their relatively large purchasing power to outbid other households from locations that are especially attractive to them, as is predicted by household location theory. Using a residential sorting model we estimate a residential location choice model in which households choose their residential location on the basis of natural and urban amenities as well as the accessibility of jobs. The model used allows for heterogeneity between households in the preferences of the characteristics of their residential location. The results show that an average household would like to live close to a large labour market, close to a railway station, in regions with a high regional wage, and have urban facilities. Households are indifferent with respect to the distance to the nearest highway slip road and the amount of nature. Power couples are willing to pay more than the average household in order to be located close to large labour markets and to have good urban facilities in their residential location. The results show that the location choice is not simply more connected with only the working place. Although accessibility to the workplace is still important, the amenities, that the location offers are also regarded as important; especially for power couples. And it explains why these couples are more likely to live in large urban areas.
|Date of creation:||Sep 2011|
|Date of revision:|
|Contact details of provider:|| Postal: Welthandelsplatz 1, 1020 Vienna, Austria|
Web page: http://www.ersa.org
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.:
- Patrick Bayer & Robert McMillan & Kim Rueben, 2004.
"Residential Segregation in General Equilibrium,"
885, Economic Growth Center, Yale University.
- Bulent Guler & Fatih Guvenen & Giovanni L. Violante, 2009.
"Joint-search theory: new opportunities and new frictions,"
426, Federal Reserve Bank of Minneapolis.
- Guler, Bulent & Guvenen, Fatih & Violante, Giovanni L., 2012. "Joint-search theory: New opportunities and new frictions," Journal of Monetary Economics, Elsevier, vol. 59(4), pages 352-369.
- Giovanni L. Violante & Fatih Guvenen & Bulent Guler, 2008. "Joint-Search Theory: New Opportunities and New Frictions," 2008 Meeting Papers 856, Society for Economic Dynamics.
- Bulent Guler & Fatih Guvenen & Giovanni L. Violante, 2009. "Joint-Search Theory: New Opportunities and New Frictions," NBER Working Papers 15011, National Bureau of Economic Research, Inc.
- Steven T. Berry, 1994. "Estimating Discrete-Choice Models of Product Differentiation," RAND Journal of Economics, The RAND Corporation, vol. 25(2), pages 242-262, Summer.
- Stefan P.T. Groot & Henri L.F. de Groot & Martijn Smit, 2011.
"Regional Wage Differences in the Netherlands: Micro-Evidence on Agglomeration Externalities,"
Tinbergen Institute Discussion Papers
11-050/3, Tinbergen Institute.
- Stefan P.T. Groot & Henri L.F. Groot & Martijn J. Smit, 2014. "Regional Wage Differences In The Netherlands: Micro Evidence On Agglomeration Externalities," Journal of Regional Science, Wiley Blackwell, vol. 54(3), pages 503-523, 06.
- Stefan Groot & Henri de Groot & Martijn Smit, 2011. "Regional wage differences in the Netherlands: Micro-evidence on agglomeration externalities," CPB Discussion Paper 184, CPB Netherlands Bureau for Economic Policy Analysis.
- Mills, Edwin S. & Nijkamp, Peter, 1987. "Advances in urban economics," Handbook of Regional and Urban Economics, in: E. S. Mills (ed.), Handbook of Regional and Urban Economics, edition 1, volume 2, chapter 17, pages 703-714 Elsevier.
- Berry, Steven & Levinsohn, James & Pakes, Ariel, 1995. "Automobile Prices in Market Equilibrium," Econometrica, Econometric Society, vol. 63(4), pages 841-90, July.
- Dora L. Costa & Matthew E. Kahn, 1999.
"Power Couples: Changes in the Locational Choice of the College Educated, 1940-1990,"
NBER Working Papers
7109, National Bureau of Economic Research, Inc.
- Dora L. Costa & Matthew E. Kahn, 2000. "Power Couples: Changes in the Locational Choice of the College Educated, 1940–1990," The Quarterly Journal of Economics, Oxford University Press, vol. 115(4), pages 1287-1315.
- Frank Corvers & Maud Hensen & Dion Bongaerts, 2009. "Delimitation and Coherence of Functional and Administrative Regions," Regional Studies, Taylor & Francis Journals, vol. 43(1), pages 19-31.
- Wouter Vermeulen & Jan Rouwendal, 2007. "Housing supply in the Netherlands," CPB Discussion Paper 87, CPB Netherlands Bureau for Economic Policy Analysis.
- McGoldrick, KimMarie & Robst, John, 1996. "Gender Differences in Overeducation: A Test of the Theory of Differential Overqualification," American Economic Review, American Economic Association, vol. 86(2), pages 280-84, May.
When requesting a correction, please mention this item's handle: RePEc:wiw:wiwrsa:ersa10p816. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Gunther Maier)
If references are entirely missing, you can add them using this form.