The dynamics of household location preferences in Germany

Uwe Neumann and Christoph Schmidt

No 1126, Ruhr Economic Papers from RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen

Abstract: Inspired by the literature on social polarisation and residential segregation we draw on a probabilistic approach to pursue the evolution of household location preferences in West Germany. Using microdata from the German Socio-Economic Panel (SOEP) for the period 1984-2020 we demonstrate that structural economic change was accompanied by an increasing preference for residence in compact housing close to urban centres. Our analysis outlines that during the past two decades, intra-urban and urban-rural disparities by age and skills have begun to rise. Even for Germany, where segregation is moderate, any scenario suggesting neighbourhood-level convergence of living standards seems unlikely.

Keywords: Household location; segregation; structural change; SOEP (search for similar items in EconPapers)
JEL-codes: C25 R21 R23 (search for similar items in EconPapers)
Date: 2024
New Economics Papers: this item is included in nep-eur and nep-his
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Persistent link: https://EconPapers.repec.org/RePEc:zbw:rwirep:311297

DOI: 10.4419/96973308

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