Wages, Rents, Unemployment, and the Quality of Life
Combining a spatial equilibrium model with a matching unemployment model, this paper analyzes the regional quality of life when wages, rents, and unemployment risk compensate for local amenities and disamenities. In particular, the paper shows for quasi-linear utility that the effects of any amenity on wages and unemployment rates are of opposite sign. Additionally, the wage rate and the labor market tightness increase and the unemployment ratio decreases in reaction to an increase in the level of an amenity if the amenity is marginally more beneficial to producers than to consumers per unit of land. Based on the model, quality of life of the unemployed in West German counties is estimated.
|Date of creation:||2012|
|Date of revision:|
|Contact details of provider:|| Web page: http://www.socialpolitik.org/|
More information through EDIRC
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.:
- David Albouy, 2009.
"The Unequal Geographic Burden of Federal Taxation,"
Journal of Political Economy,
University of Chicago Press, vol. 117(4), pages 635-667, 08.
- Kline, Patrick & Moretti, Enrico, 2013.
"Place Based Policies with Unemployment,"
IZA Discussion Papers
7180, Institute for the Study of Labor (IZA).
- Kentaro Nakajima & Takatoshi Tabuchi, 2011.
"Estimating Interregional Utility Differentials,"
Journal of Regional Science,
Wiley Blackwell, vol. 51(1), pages 31-46, 02.
- Blanchflower, D. & Oswald, A., 1989.
"The Wage Curve,"
340, London School of Economics - Centre for Labour Economics.
- Thiess Buettner & Alexander Ebertz, 2009.
"Quality of life in the regions: results for German Counties,"
The Annals of Regional Science,
Springer, vol. 43(1), pages 89-112, March.
- Thiess Büttner & Alexander Ebertz, 2007. "Quality of Life in the Regions - Results for German Counties," Ifo Working Paper Series Ifo Working Paper No. 49, Ifo Institute for Economic Research at the University of Munich.
- Jens Suedekum, 2003.
"Increasing Returns and Spatial Unemployment Disparities,"
ERSA conference papers
ersa03p44, European Regional Science Association.
- Jens Suedekum, 2005. "Increasing returns and spatial unemployment disparities," Papers in Regional Science, Wiley Blackwell, vol. 84(2), pages 159-181, 06.
- Suedekum, Jens, 2004. "Increasing Returns and Spatial Unemployment Disparities," HWWA Discussion Papers 256, Hamburg Institute of International Economics (HWWA).
- Jens Südekum, 2003. "Increasing Returns and Spatial Unemployment Disparities," Departmental Discussion Papers 117, University of Goettingen, Department of Economics.
- Stuart A. Gabriel & Stuart S. Rosenthal, 2004.
"Quality of the Business Environment Versus Quality of Life: Do Firms and Households Like the Same Cities?,"
The Review of Economics and Statistics,
MIT Press, vol. 86(1), pages 438-444, February.
- Stuart Gabriel & Stuart S. Rosenthal, 2003. "Quality of the Business Environment Versus Quality of Life: Do Firms and Households Like the Same Cities?," Working Paper 8615, USC Lusk Center for Real Estate.
- repec:cup:cbooks:9780521875387 is not listed on IDEAS
- Lee, Chul-In, 2008. "Migration and the wage and unemployment gaps between urban and non-urban sectors: A dynamic general equilibrium reinterpretation of the Harris-Todaro equilibrium," Labour Economics, Elsevier, vol. 15(6), pages 1416-1434, December.
- David Card, 1995.
"The Wage Curve: A Review,"
722, Princeton University, Department of Economics, Industrial Relations Section..
- Bellmann, Lutz & Gerner, Hans-Dieter & Upward, Richard, 2011. "Job and Worker Turnover in German Establishments," IZA Discussion Papers 6081, Institute for the Study of Labor (IZA).
- Winters, John V, 2010.
"Differences in Quality of Life Estimates Using Rents and Home Values,"
22455, University Library of Munich, Germany.
- John Winters, 2013. "Differences in quality of life estimates using rents and home values," The Annals of Regional Science, Springer, vol. 51(2), pages 377-409, October.
- Winters, John V., 2012. "Differences in Quality of Life Estimates Using Rents and Home Values," IZA Discussion Papers 6703, Institute for the Study of Labor (IZA).
- Deller, Steven C., 2009. "Wages, Rent, Unemployment and Amenities," Journal of Regional Analysis and Policy, Mid-Continent Regional Science Association, vol. 39(2).
- Peter Nijkamp & Jacques Poot, 2005.
"The Last Word on the Wage Curve?,"
Journal of Economic Surveys,
Wiley Blackwell, vol. 19(3), pages 421-450, 07.
- Patrick Bayer & Nathaniel Keohane & Christopher Timmins, 2006.
"Migration and Hedonic Valuation: The Case of Air Quality,"
NBER Working Papers
12106, National Bureau of Economic Research, Inc.
- Bayer, Patrick & Keohane, Nathaniel & Timmins, Christopher, 2009. "Migration and hedonic valuation: The case of air quality," Journal of Environmental Economics and Management, Elsevier, vol. 58(1), pages 1-14, July.
- Chen, Yong & Rosenthal, Stuart S., 2008. "Local amenities and life-cycle migration: Do people move for jobs or fun?," Journal of Urban Economics, Elsevier, vol. 64(3), pages 519-537, November.
- Christopher A. Pissarides, 2000. "Equilibrium Unemployment Theory, 2nd Edition," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262161877, June.
- repec:cup:cbooks:9780521698221 is not listed on IDEAS
- Dale T. Mortensen & Christopher A. Pissarides, 1993.
"Job Creation and Job Destruction in the Theory of Unemployment,"
CEP Discussion Papers
dp0110, Centre for Economic Performance, LSE.
- Mortensen, Dale T & Pissarides, Christopher A, 1994. "Job Creation and Job Destruction in the Theory of Unemployment," Review of Economic Studies, Wiley Blackwell, vol. 61(3), pages 397-415, July.
- Gyourko, Joseph & Tracy, Joseph, 1991. "The Structure of Local Public Finance and the Quality of Life," Journal of Political Economy, University of Chicago Press, vol. 99(4), pages 774-806, August.
- Roback, Jennifer, 1982. "Wages, Rents, and the Quality of Life," Journal of Political Economy, University of Chicago Press, vol. 90(6), pages 1257-78, December.
- Greenwood, Michael J, et al, 1991. "Migration, Regional Equilibrium, and the Estimation of Compensating Differentials," American Economic Review, American Economic Association, vol. 81(5), pages 1382-90, December.
When requesting a correction, please mention this item's handle: RePEc:zbw:vfsc12:62034. 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: (ZBW - German National Library of Economics)
If references are entirely missing, you can add them using this form.