Arbeitspapier
Compensation of Regional Unemployment in Housing Markets
Why are regional unemployment differentials in Europe so persistent if, as the wage curve literature demonstrates, there is no compensation in labour markets? We hypothesize that workers in high-unemployment regions are compensated in housing markets. Modelling regional unemployment differentials as a consequence of centralized wage bargaining, we show that clearing of land markets may undo the incentive for workers to migrate to low-unemployment regions in general equilibrium. The compensating differentials hypothesis is tested on city-level data for several countries. Controlling for variation in income and amenities, housing is found to be about 3 percent less expensive on average in cities where unemployment is 10 percent up. An analysis of housing demand survey data, which takes account of housing heterogeneity, yields a similar negative relationship. The magnitude of the income effect generated by this compensating differential is consistent with a -0.10 wage curve elasticity. These findings weaken the case for regional support programs.
- Sprache
-
Englisch
- Erschienen in
-
Series: Tinbergen Institute Discussion Paper ; No. 05-093/3
- Klassifikation
-
Wirtschaft
Urban, Rural, Regional, Real Estate, and Transportation Economics: Regional Migration; Regional Labor Markets; Population; Neighborhood Characteristics
General Equilibrium and Welfare Economic Analysis of Regional Economies
Unemployment: Models, Duration, Incidence, and Job Search
- Thema
-
regional unemployment
housing markets
wage curve
compensating differentials
hedonic models
regional policy
- Ereignis
-
Geistige Schöpfung
- (wer)
-
Vermeulen, Wouter
van Ommeren, Jos
- Ereignis
-
Veröffentlichung
- (wer)
-
Tinbergen Institute
- (wo)
-
Amsterdam and Rotterdam
- (wann)
-
2005
- Handle
- Letzte Aktualisierung
-
10.03.2025, 11:41 MEZ
Datenpartner
ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. Bei Fragen zum Objekt wenden Sie sich bitte an den Datenpartner.
Objekttyp
- Arbeitspapier
Beteiligte
- Vermeulen, Wouter
- van Ommeren, Jos
- Tinbergen Institute
Entstanden
- 2005
Ähnliche Objekte (12)
Transaction Costs in Housing Markets
Dual Earners, Urban Labor Markets and Housing Demand
What causes the positive price-turnover correlation in European housing markets?
Social Interactions in Unemployment
Unemployment and tax design
The ABC of Housing Strategies: Are Housing Assistance Programs Effective in Enhancing Children's Well Being?
Tracing the Changing Measures of Unemployment in Dutch Unemployment Statistics 1900-1940
Catching Hipo's: Screening, Wages and Unemployment
Compensation of On-call and Fixed-term Employment: the Role of Uncertainty
The Credibility Problem in Unemployment Insurance Policy
Multiple Causation and the Measurement of Unemployment
Splitting Orders in Fragmented Markets
Transaction Costs in Housing Markets
Dual Earners, Urban Labor Markets and Housing Demand
What causes the positive price-turnover correlation in European housing markets?
Social Interactions in Unemployment
Unemployment and tax design
The ABC of Housing Strategies: Are Housing Assistance Programs Effective in Enhancing Children's Well Being?
Tracing the Changing Measures of Unemployment in Dutch Unemployment Statistics 1900-1940
Catching Hipo's: Screening, Wages and Unemployment
Compensation of On-call and Fixed-term Employment: the Role of Uncertainty
The Credibility Problem in Unemployment Insurance Policy
Multiple Causation and the Measurement of Unemployment
Splitting Orders in Fragmented Markets
Transaction Costs in Housing Markets
Dual Earners, Urban Labor Markets and Housing Demand
What causes the positive price-turnover correlation in European housing markets?
Social Interactions in Unemployment
Unemployment and tax design
The ABC of Housing Strategies: Are Housing Assistance Programs Effective in Enhancing Children's Well Being?
Tracing the Changing Measures of Unemployment in Dutch Unemployment Statistics 1900-1940
Catching Hipo's: Screening, Wages and Unemployment
Compensation of On-call and Fixed-term Employment: the Role of Uncertainty
The Credibility Problem in Unemployment Insurance Policy
Multiple Causation and the Measurement of Unemployment