To Migrate or to Commute?

Stefan Gruber

Review of Economic Analysis, 2010, vol. 2, issue 1, 110-134

Abstract: In this paper, we investigate the agglomeration patterns in a New Economic Geography model when commuting is allowed. The introduction of both commuting and housing costs leads to a disentangling of the agglomeration of firms and people. Commuting al- lows workers to continue living in agglomerations and enjoying the benefits of a larger product variety, despite high housing costs, since they may choose to commute to another place where they receive higher wages, which in turn enables them to cover high housing costs at their place of living. This observation is especially true for skilled workers, who generally are more mobile than unskilled workers.

Keywords: New Economic Geography; Commuting; Mobility of workers; Commuting costs; Housing costs (search for similar items in EconPapers)
JEL-codes: F12 F14 R12 (search for similar items in EconPapers)
Date: 2010
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Citations: View citations in EconPapers (3)

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Persistent link: https://EconPapers.repec.org/RePEc:ren:journl:v:2:y:2010:i:1:p:110-134

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