Why do the poor live in cities? The role of public transportation

Glaeser, Edward L.; Kahn, Matthew E.; Rappaport, Jordan

doi:10.1016/j.jue.2006.12.004

“…This one is based on a particular formulation of the labor-leisure choice, which is consistent with the empirical literature that shows that the time cost of commuting increases with the wage (see, e.g. Small, 1992, andGlaeser et al, 2007).…”

Section: Urban Land-use Equilibriumsupporting

confidence: 75%

Endogenous job destruction and job matching in cities

Zénou

¹

2009

Journal of Urban Economics

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in Endogenous Job Destruction and Job Matching in CitiesYves Zenou The Institute for the Study of Labor (IZA) in Bonn is a local and virtual international research center and a place of communication between science, politics and business. IZA is an independent nonprofit company supported by Deutsche Post World Net. The center is associated with the University of Bonn and offers a stimulating research environment through its research networks, research support, and visitors and doctoral programs. IZA engages in (i) original and internationally competitive research in all fields of labor economics, (ii) development of policy concepts, and (iii) dissemination of research results and concepts to the interested public. D I S C U S S I O N P A P E R S E R I E SIZA Discussion Papers often represent preliminary work and are circulated to encourage discussion. Citation of such a paper should account for its provisional character. A revised version may be available directly from the author. ABSTRACT Endogenous Job Destruction and Job Matching in Cities *We propose a spatial search-matching model where both job creation and job destruction are endogenous. Workers are ex ante identical but not ex post since their job can be hit by a technological shock, which decreases their productivity. They reside in a city and commuting to the job center involves both pecuniary and time costs. Thus, workers with high wages are willing to live closer to jobs to save on time commuting costs. We show that, in equilibrium, there is a one-to-one correspondence between the productivity space and the urban location space since high-productivity workers bid away low-productivity workers in order to occupy locations close to jobs. We also show that in the bargaining process, there is a spatial element in the wage setting since firms need to compensate workers for their spatial costs. Compared to the non-spatial model, the unemployment rate and the reservation productivity are lower and the job-creation rate is higher because the urban space through commuting costs and land rent create additional frictions in the labor market.JEL Classification: D83, J41, J64, R14

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“…This group appears to be at a corner solution in which essentially all rich people own houses. This finding surely reflects a strong connection between income and wanting to live in a single-family detached house (Glaeser, Kahn, and Rappaport, 2008). The model in the appendix also suggests that homeownership should yield higher benefits in high-quality units that require a lot of regular maintenance.…”

Section: Progressivity and The Deductionmentioning

confidence: 90%

“…If proximity breeds empathy, as Luttmer's work (2001) shows that support for redistribution rises among people who live near poorer people of the same race, then distance may reduce that empathy. Because poorer people tend to live disproportionately in cities (Glaeser, Kahn, and Rappaport, 2008), bribing wealthier people to leave higher density apartments is increasing the physical, and possibly also the social, distance between rich and poor.…”

Section: The Social Consequences Of Subsidizing Single-unit Dwellingsmentioning

confidence: 99%

Rethinking the Federal Bias Toward Homeownership

Glaeser¹

2011

Self Cite

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“…7 5 Manning (2003) re-examines the results by Benito and Oswald (1999) and finds that the IV approach used by Benito and Oswald (1999) is sensitive to the choice of the instruments. Note that the use of educational level as an instrument for household income, which is common in the demand for residential space analysis (Glaeser et al, 2008), is not appropriate, as educational level has a (strong) effect on the job arrival rate and therefore on the observed commute.…”

Section: Theories Which Explain An Income-commuting Relationshipmentioning

confidence: 99%

Do rich households live farther away from their workplaces?

Gutiérrez‐i‐Puigarnau

¹

,

Mulalic

²

,

Ommeren

³

2014

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Standard-Nutzungsbedingungen:Die Dokumente auf EconStor dürfen zu eigenen wissenschaftlichen Zwecken und zum Privatgebrauch gespeichert und kopiert werden.Sie dürfen die Dokumente nicht für öffentliche oder kommerzielle Zwecke vervielfältigen, öffentlich ausstellen, öffentlich zugänglich machen, vertreiben oder anderweitig nutzen.Sofern die Verfasser die Dokumente unter Open-Content-Lizenzen (insbesondere CC-Lizenzen) zur Verfügung gestellt haben sollten, gelten abweichend von diesen Nutzungsbedingungen die in der dort genannten Lizenz gewährten Nutzungsrechte. Terms of use: Documents in EconStor may 13-2-2012 AbstractOne of the classic predictions of the urban economic theory is that high-income and low-income households choose different residential locations and therefore, conditional on workplace location, have different commuting patterns. Empirical tests of this theory are not standard, due to reverse causation and lack of good control variables. In the current paper, estimates of household income on commuting distance are derived using residential changes in distance for a given workplace, so reverse causation is eliminated. Our results show that the long-run income elasticity of commuting distance is positive and around 0.18. The results suggest that the elasticities are higher for single wage-earners than for dual wage-earners and higher for females than for males.

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Why do the poor live in cities? The role of public transportation

Cited by 660 publications

References 27 publications

Endogenous job destruction and job matching in cities

Endogenous job destruction and job matching in cities

Rethinking the Federal Bias Toward Homeownership

Do rich households live farther away from their workplaces?

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