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Who lives where in the city? Amenities, commuting and income sorting

Carl Gaigne, Hans R.A. Koster, Fabien Moizeau () and Jacques Thisse ()

Journal of Urban Economics, 2022, vol. 128, issue C

Abstract: We develop a new model of a “featureful” city in which locations are differentiated by two attributes, that is, the distance to employment centers and the accessibility to given amenities. The residential equilibrium involves the spatial separation of households sharing similar incomes. Under Stone-Geary preferences, amenities and commuting are subsumed into a location-quality index. Hence, the assignment of households to locations becomes one-dimensional. Since residential choices are driven by the location-quality index, the income mapping may be fully characterized. Using a rich micro-dataset on the Netherlands, we show that household income sorting is indeed driven by amenities and commuting times.

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: 2022
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Persistent link: https://EconPapers.repec.org/RePEc:eee:juecon:v:128:y:2022:i:c:s0094119021000760

DOI: 10.1016/j.jue.2021.103394

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