Arbeitspapier
Efficiency Wages, Urban Unemployment and Housing Consumption
The aim of this paper is to introduce endogenous housing consumption in an efficiency wage model in which two cases are considered: very high and zero relocation costs. First, in both cases, we are able to totally characterize the efficiency wage for any preferences that are quasi-linear with respect to the composite good consumption. Second, in each case, we show how endogenous housing consumption affects the value of the efficiency wage (compared to the case of fixed housing consumption) and demonstrates the existence and the uniqueness of a steady-state equilibrium. Finally, we compare the two models and show how mobility costs affect the efficiency wage setting.
- Language
-
Englisch
- Bibliographic citation
-
Series: IUI Working Paper ; No. 606
- Classification
-
Wirtschaft
Labor Contracts
Land Use Patterns
- Subject
-
Relocation Costs
Location-Dependent Wages
Urban Labor Markets
Städtische Arbeitslosigkeit
Städtischer Arbeitsmarkt
Wohnkosten
- Event
-
Geistige Schöpfung
- (who)
-
Zenou, Yves
- Event
-
Veröffentlichung
- (who)
-
The Research Institute of Industrial Economics (IUI)
- (where)
-
Stockholm
- (when)
-
2003
- Handle
- Last update
-
10.03.2025, 11:41 AM CET
Data provider
This object is provided by:
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ZBW - Deutsche Zentralbibliothek für Wirtschaftswissenschaften - Leibniz-Informationszentrum Wirtschaft. If you have any questions about the object, please contact the data provider.
Object type
- Arbeitspapier
Associated
- Zenou, Yves
- The Research Institute of Industrial Economics (IUI)
Time of origin
- 2003
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