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Backward-bending Labor Supply and Urban Location

Takatoshi Tabuchi

MPRA Paper from University Library of Munich, Germany

Abstract: This paper is an attempt to combine a labor supply model with a housing location model. We focus on the trade-off between the hours of work, commute times and leisure time as well as the trade-off between the consumption of a good, housing space, and leisure time. We show that both labor supply and urban location choice are inverted U-shaped in relation to the wage rate. These results are empirically shown by using Japanese data on the hours of work and commute times by household income class and on the number of households by income class.

Keywords: labor supply; leisure time; residential location; U-shaped relationship (search for similar items in EconPapers)
JEL-codes: J22 R21 R31 (search for similar items in EconPapers)
Date: 2022-09-29
New Economics Papers: this item is included in nep-lma and nep-ure
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