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The capitalization of non-market attributes into regional housing rents and wages: Evidence on German functional labor market areas

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  • Hiller, Norbert
  • Lerbs, Oliver

Abstract

This paper extends existing research on regional quality of life in Germany by newly estimating the role of region-specific (dis-)amenities in the determination of regional housing rents and wages. Different from previous studies, the empirical analysis draws on functional labor market areas recently delineated by Kosfeld and Werner [Raumf Raumordn (2012) 70: 49-64] rather than administrative jurisdictions, circumventing problems of spatial autocorrelation. Consistent with cross-region spatial equilibrium, the results indicate that labor market area heterogeneity in housing rents and wages is closely related to differences in non-market attributes that affect household utility. The results enable the construction of a comprehensive ranking of regional quality of life which can be directly compared to the findings of previous studies.

Suggested Citation

  • Hiller, Norbert & Lerbs, Oliver, 2014. "The capitalization of non-market attributes into regional housing rents and wages: Evidence on German functional labor market areas," CAWM Discussion Papers 71, University of Münster, Center of Applied Economic Research Münster (CAWM).
  • Handle: RePEc:zbw:cawmdp:71
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    References listed on IDEAS

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    Cited by:

    1. Chauvin, Juan Pablo & Glaeser, Edward & Ma, Yueran & Tobio, Kristina, 2017. "What is different about urbanization in rich and poor countries? Cities in Brazil, China, India and the United States," Journal of Urban Economics, Elsevier, vol. 98(C), pages 17-49.
    2. Lerbs, Oliver & Hiller, Norbert, 2015. "Aging and Urban House Prices," Annual Conference 2015 (Muenster): Economic Development - Theory and Policy 113136, Verein für Socialpolitik / German Economic Association.

    More about this item

    Keywords

    Functional labor market areas; Non-market (dis-)amenities; Spatial equilibrium analysis; Quality of Life; Spatial autocorrelation;

    JEL classification:

    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population

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