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The effect of amenities on local wage distributions

The effect of amenities on local wage distributions This paper predicts that local wage distributions will contract with an improvement in amenities by imposing structure on the standard model of amenity capitalization with multiple worker types (Roback in Econ Inq 26(1):23–41, 1988). The added structure is Ellickson’s (Am Econ Rev 61(2):334–339, 1971) single-crossing condition, which assumes that the willingness to accept higher housing prices for better amenities increases with income. The model predicts that under empirically plausible conditions, workers at the upper end of the wage distribution will earn less in locations with better amenities while those at the lower end will actually earn more. http://www.deepdyve.com/assets/images/DeepDyve-Logo-lg.png Letters in Spatial and Resource Science Springer Journals

The effect of amenities on local wage distributions

Kerr, Craig
Letters in Spatial and Resource Science , Volume 10 (2) – Feb 27, 2017
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References (34)

Publisher
Springer Journals
Copyright
Copyright © 2017 by Springer-Verlag Berlin Heidelberg
Subject
Economics; Regional/Spatial Science; Agricultural Economics; Geographical Information Systems/Cartography; Landscape/Regional and Urban Planning; Environmental Economics; Demography
ISSN
1864-4031
eISSN
1864-404X
DOI
10.1007/s12076-017-0183-0
Publisher site
See Article on Publisher Site

Abstract

This paper predicts that local wage distributions will contract with an improvement in amenities by imposing structure on the standard model of amenity capitalization with multiple worker types (Roback in Econ Inq 26(1):23–41, 1988). The added structure is Ellickson’s (Am Econ Rev 61(2):334–339, 1971) single-crossing condition, which assumes that the willingness to accept higher housing prices for better amenities increases with income. The model predicts that under empirically plausible conditions, workers at the upper end of the wage distribution will earn less in locations with better amenities while those at the lower end will actually earn more.

Journal

Letters in Spatial and Resource Science – Springer Journals

Published: Feb 27, 2017

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