Who Lives Where in the City? Amenities, Commuting and Income Sorting

Jacques Thisse, Gaigtné, Carl, Hans Koster and Fabien Moizeau
Authors registered in the RePEc Author Service: Carl Gaigne

No 11958, CEPR Discussion Papers from Centre for Economic Policy Research

Abstract: We study the sorting of income-heterogeneous consumers within cities. We allow for non-homothetic preferences and locations that are differentiated by their distance to employment centers and accessibility to exogenous amenities. The residential equilibrium is driven by the properties of an amenity-commuting aggregator obtained from the primitives of the model. Using micro-data on the Randstad (the Netherlands), we find that doubling the amenity level, resp. commuting time, attracts households whose incomes are 1 -2:5% higher, resp. 6 - 17:5% lower. Using the model's estimated parameters, we predict the impact of changes in accessibility to jobs and amenities on the social structure of the Randstad.

Keywords: Cities; Social stratification; Income; Amenities; Commuting (search for similar items in EconPapers)
JEL-codes: R14 R23 R53 Z13 (search for similar items in EconPapers)
Date: 2017-04
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Citations: View citations in EconPapers (13)

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Related works:
Journal Article: Who lives where in the city? Amenities, commuting and income sorting (2022)
Working Paper: Who Lives Where in the City? Amenities, Commuting and Income Sorting (2022)
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