Bobos in Paradise: Urban Politics and the New Economy

Gilles Saint-Paul

No 9423, IZA Discussion Papers from Institute of Labor Economics (IZA)

Abstract: This paper provides some elements to explain the observed takeover in some urban areas of a new kind of elite associated with new economy jobs, also known as "bourgeois bohème" (bobos). This takeover has been associated with greater investment in urban amenities and "clean" means of transport, with adverse effects on commuting time. The model allows us to explain those developments by productivity is growth in the new economy, and by the differences in production processes between the new and old economies. The consequences of bobo takeover for house prices and employment of unskilled service workers are also discussed. A bunkerized equilibrium in which skilled workers in the old economy no longer reside in the city and have been replaced by service workers is studied. In such an equilibrium urban amenities are at their maximum and commuting flows have been eliminated. For some parameter values, bobos are better-off under bunkerization, in which case they may gain by favoring it with a "diversity" subsidy for unskilled workers to reside in the city.

Keywords: urban voting models; local public goods; residential choice; bobos; urban amenities; new economy; bunkerization (search for similar items in EconPapers)
JEL-codes: H7 R3 R4 R5 (search for similar items in EconPapers)
Pages: 51 pages
Date: 2015-10
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (3)

Published - published in: Economics, 2018, 12 (1), 20180056

Downloads: (external link)
https://docs.iza.org/dp9423.pdf (application/pdf)

Related works:
Journal Article: Bobos in paradise: Urban politics and the new economy (2018)
Working Paper: Bobos in paradise: urban politics and the new economy (2018)
Working Paper: Bobos in paradise: urban politics and the new economy (2018)
Working Paper: Bobos in paradise: Urban politics and the new economy (2017)
Working Paper: Bobos in Paradise: Urban Politics and the New Economy (2015)
Working Paper: Bobos in Paradise: Urban Politics and the New Economy (2015)
Working Paper: Bobos in Paradise: Urban Politics and the New Economy (2015)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:iza:izadps:dp9423

Ordering information: This working paper can be ordered from
IZA, Margard Ody, P.O. Box 7240, D-53072 Bonn, Germany

Access Statistics for this paper

More papers in IZA Discussion Papers from Institute of Labor Economics (IZA) IZA, P.O. Box 7240, D-53072 Bonn, Germany. Contact information at EDIRC.
Bibliographic data for series maintained by Holger Hinte ().