Wages, rents, unemployment, and the quality of life

Arbeitspapier

Combining a spatial equilibrium model with a search-matching unemployment model, this paper analyzes the willingness to pay for regional amenities and the regional quality of life when wages, rents, and unemployment risk compensate for local amenities and disamenities. The results are compared with those obtained from the Rosen-Roback approach. Furthermore, the paper shows that the wage curve is negatively sloped for quasi-linear utility. Specifically, the wage rate increases and the unemployment ratio decreases in response to an increase in the amenity level if the amenity is marginally more beneficial to producers than to consumers. As an illustration of the unemployment-adjusted quality-of-life measure, the quality of life in West German counties is estimated.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: IWQW Discussion Papers ; No. 01/2012 [rev.]

Classification and Topics

• Classification: Wirtschaft ; Size and Spatial Distributions of Regional Economic Activity ; General Equilibrium and Welfare Economic Analysis of Regional Economies ; Land Use Patterns ; State and Local Government; Intergovernmental Relations: Interjurisdictional Differentials and Their Effects ; Geographic Labor Mobility; Immigrant Workers ; Unemployment: Models, Duration, Incidence, and Job Search
• Subject: quality of life ; residential mobility ; unemployment ; job search ; matching ; Lebensqualität ; Region ; Regionale Arbeitslosigkeit ; Regionale Lohnstruktur ; Miete ; Schätzung ; Deutschland

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Wrede, Matthias
• Event: Veröffentlichung
• (who): Friedrich-Alexander-Universität Erlangen-Nürnberg, Institut für Wirtschaftspolitik und Quantitative Wirtschaftsforschung (IWQW)
• (where): Nürnberg
• (when): 2012

Further information

• Handle: http://hdl.handle.net/10419/59572
• Last update: 10.03.2025, 11:42 AM CET