Do rich households live farther away from their workplaces?
Eva Gutierrez Puigarnau and
Jos van Ommeren ()
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Eva Gutierrez Puigarnau: CPB Netherlands Bureau for Economic Policy Analysis
Authors registered in the RePEc Author Service: Hugo Rojas-Romagosa ()
CPB Discussion Paper from CPB Netherlands Bureau for Economic Policy Analysis
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)
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Journal Article: Do rich households live farther away from their workplaces? (2016)
Working Paper: Do rich households live farther away from their workplaces? (2012)
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Persistent link: https://EconPapers.repec.org/RePEc:cpb:discus:244.rdf
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