Do rich households live farther away from their workplaces?

Eva Gutiérrez-i-Puigarnau and Jos N. van Ommeren
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Jos N. van Ommeren: VU

No 244, CPB Discussion Paper from CPB Netherlands Bureau for Economic Policy Analysis

Abstract: One of the classic predictions of urban economic theory is that high-income and low-income households choose different residential locations and therefore, conditional on workplace location, have different commuting patterns. According to theory, the effect of household income on commuting distance may be positive or negative. Empirical tests of this effect are not standard, due to reverse causation and lack of good control variables. To address reverse causation, estimates of household income on commuting distance are derived using changes in distance through residential moves keeping workplace location constant. Our results show that the (long-run) income elasticity of distance is non-negative and around 0.14 for dual wage-earners.

JEL-codes: D1 J3 R2 (search for similar items in EconPapers)
Date: 2013-05
New Economics Papers: this item is included in nep-tre and nep-ure
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Citations: View citations in EconPapers (12)

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Journal Article: Do rich households live farther away from their workplaces? (2016)
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Persistent link: https://EconPapers.repec.org/RePEc:cpb:discus:244

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