Who Lives Where in the City? Amenities, Commuting and Income Sorting - HAL-SHS - Sciences de l'Homme et de la Société Access content directly
Journal Articles Journal of Urban Economics Year : 2022

Who Lives Where in the City? Amenities, Commuting and Income Sorting

Abstract

We develop a new model of a "featureful" city in which locations are di¤erentiated by two attributes, that is, the distance to employment centers and the accessibility to given amenities. The residential equilibrium involves the spatial separation of households sharing similar incomes. Under Stone-Geary preferences, amenities and commuting are subsumed into a location-quality index. Hence, the assignment of households to locations becomes one-dimensional. Since residential choices are driven by the location-quality index, the income mapping may be fully characterized. Using a rich micro-dataset on the Netherlands, we show that household income sorting is indeed driven by amenities and commuting times.
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Dates and versions

halshs-03379541 , version 1 (15-10-2021)

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Carl Gaigné, Hans R A Koster, Fabien Moizeau, Jacques-François Thisse. Who Lives Where in the City? Amenities, Commuting and Income Sorting. Journal of Urban Economics, 2022, 128, pp.103394. ⟨10.1016/j.jue.2021.103394⟩. ⟨halshs-03379541⟩
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