Spatial Sorting And Inequality
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Spatial Sorting And Inequality
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Author : Rebecca Diamond
language : en
Publisher:
Release Date : 2022
Spatial Sorting And Inequality written by Rebecca Diamond and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2022 with categories.
The spatial segregation of college-educated and non-college-educated workers between commuting zones in the United States has steadily grown since 1980. We summarize prior work on sorting and location and document new descriptive patterns on how sorting and locations have changed over the past four decades. We find that there has been a shift in the sorting of college-educated workers from cities centered primarily around production in 1980 to cities centered around consumption by 2017. We develop a spatial equilibrium model to understand these patterns and highlight key places where further research is needed. Our framework helps understand the causes and consequences of changes in spatial sorting; their impact on inequality; and how they respond to, and feed into, the changing nature of cities.
Firm Sorting And Spatial Inequality
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Author : Ilse Lindenlaub
language : en
Publisher:
Release Date : 2022
Firm Sorting And Spatial Inequality written by Ilse Lindenlaub and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2022 with categories.
We study the importance of firm sorting for spatial inequality. If productive locations are able to attract the most productive firms, then firm sorting acts as an amplifier of spatial inequality. We develop a novel model of spatial firm sorting, in which heterogeneous firms first choose a location and then hire workers in a frictional local labor market. Firms' location choices are guided by a fundamental trade-off: Operating in productive locations increases output per worker, but sharing a labor market with other productive firms makes it hard to poach and retain workers, and hence limits firm size. We show that sorting between firms and locations is positive--i.e., more productive firms settle in more productive locations--if firm and location productivity are complements and labor market frictions are sufficiently large. We estimate our model using administrative data from Germany and find that highly productive firms indeed sort into the most productive locations. In our main application, we quantify the role of firm sorting for wage differences between East and West Germany, which reveals that firm sorting accounts for 17%-27% of the West-East wage gap.
Income Growth And The Distributional Effects Of Urban Spatial Sorting
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Author : Victor Couture
language : en
Publisher:
Release Date : 2019
Income Growth And The Distributional Effects Of Urban Spatial Sorting written by Victor Couture and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2019 with categories.
We explore the impact of rising incomes at the top of the distribution on spatial sorting patterns within large U.S. cities. We develop and quantify a spatial model of a city with heterogeneous agents and non-homothetic preferences for neighborhoods with endogenous amenity quality. As the rich get richer, demand increases for the high quality amenities available in downtown neighborhoods. Rising demand drives up house prices and spurs the development of higher quality neighborhoods downtown. This gentrification of downtowns makes poor incumbents worse off, as they are either displaced to the suburbs or pay higher rents for amenities that they do not value as much. We quantify the corresponding impact on well-being inequality. Through the lens of the quantified model, the change in the income distribution between 1990 and 2014 led to neighborhood change and spatial resorting within urban areas that increased the welfare of richer households relative to that of poorer households, above and beyond rising nominal income inequality.
Spatial Sorting
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Author : Jan Eeckhout
language : en
Publisher:
Release Date : 2013
Spatial Sorting written by Jan Eeckhout and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2013 with categories.
We investigate the role of complementarities in production and skill mobility across cities. We propose a general equilibrium model of location choice by heterogeneously skilled workers, and consider different degrees of complementarities between the skills of workers. The nature of the complementarities determines the equilibrium skill distribution across cities. We prove that with extreme-skill complementarity, the skill distribution has fatter tails in large cities; with top-skill complementarity, there is first-order stochastic dominance. Using the model to back out skills from wage and housing price data, we find robust evidence of fat tails in large cities. Big cities have big inequality. This pattern of spatial sorting is consistent with extreme-skill complementarity: the productivity of high skilled workers and of the providers of low skilled services is mutually enhanced.
Divided Cities Understanding Intra Urban Inequalities
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Author : OECD
language : en
Publisher: OECD Publishing
Release Date : 2018-05-19
Divided Cities Understanding Intra Urban Inequalities written by OECD and has been published by OECD Publishing this book supported file pdf, txt, epub, kindle and other format this book has been release on 2018-05-19 with categories.
This report provides an assessment of spatial inequalities and segregation in cities and metropolitan areas from multiple perspectives. The chapters in the report focus on a subset of OECD countries and non-member economies, and provide new insights on cross-cutting issues for city neighbourhooods.
Local Public Service Provision And Spatial Inequality In Chinese Cities
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Author : Weizeng Sun
language : en
Publisher:
Release Date : 2017
Local Public Service Provision And Spatial Inequality In Chinese Cities written by Weizeng Sun and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2017 with categories.
Spatial inequality refers to unequal access to local public services between high- and low-income households in relation to their residential locations. We examine two hypotheses regarding the role of income sorting and land-use conditions in shaping spatial inequality in Chinese cities, where residents have little direct influence on local public service provision. First, in the presence of resource indivisibility, travel cost, and location-based rationing, scarcity of public-service resources in a city makes access to public services more uneven across neighborhoods, thus exacerbating income sorting and spatial inequality in the city. Second, the exacerbating effect of resource scarcity is mitigated by land-use conditions that limit income sorting. Estimates of willingness to pay by households of different income levels for public-service resources across cities corroborate both the exacerbating effect of resource scarcity and the mitigating effect of inclusive land-use conditions.
Two Essays On Spatial Skill Sorting And Household Saving Behavior
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Author : Minjuan Sun
language : en
Publisher:
Release Date : 2018
Two Essays On Spatial Skill Sorting And Household Saving Behavior written by Minjuan Sun and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2018 with Cities and towns categories.
This dissertation studies two wide ranging phenomena and their socio-economic impacts: urban divergence in terms of geographical skill sorting and fast rising housing prices. The first essay explores the empirical pattern as well as the driving forces behind the American cities' diverging path over the past forty years. Compared to the rest of the U.S. cities, the top 20 largest cities have been growing faster in several aspects, such as city-average wage, housing price, and measured innovation intensity (e.g., patents, venture capital). In addition, this geographical divergence has contributed substantially to the rising inequality in America. To explore the causes of this divergence, this paper constructs a spatial sorting model where entrepreneurs with different talents can freely move across cities. The key idea is that cities with advantages in innovation attract more productive entrepreneurs and more workers, thereby driving up wages and housing prices. Two things distinguish my models from others: 1. Large cities are having endogenous innovation advantage in equilibrium; 2. I can freely explore the driving forces behind the divergence, with an emphasis on how technology changes can reinforce the spatial sorting mechanism. Specifically, three types of technological changes have increased the benefits of skill clustering in innovative cities: general productivity increases; improvements in communications technologies; and declines in trade costs.The second essay studies how heterogeneous households respond to the fast rising housing prices through their life-cycle behaviors. Chinese housing market has been undergoing a rapid booming period since 1998, causing the house prices increasing significantly. As a result, households endured severe financial burdens to buy homes at price-to-income ratios of around six. Along with the rising house prices, household savings rate has been increasing consistently since 1998. Can the rising house prices be an important factor to explain the increase in household saving rate? This paper develops a life cycle dynastic model with endogenous choice on housing, coresidence and intergenerational transfer, then quantitatively analyze the effect of housing price on household saving. It shows that housing is an important motive for saving, and it accounts for about 35% of the increase in household savings rate. The housing situation affects households' saving behavior through three channels. First, households are financially constrained due to the down payment requirement and they choose to limit their consumption in order to buy houses. Second, young adults live in their parents' houses for a long time and save more intensively, since they get to pay less for the housing expenses under coresidence. Thirdly, older parents make large sum of intergeneration transfer in aid of the children's housing purchase, indicating the housing affordability issue also has influence on old parents' saving decisions.
How Much Does Sorting Increase Inequality
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Author : Michael Kremer
language : en
Publisher:
Release Date : 1996
How Much Does Sorting Increase Inequality written by Michael Kremer and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 1996 with Equality categories.
Social commentators from William Julius Wilson to Charles Murray have argued that increased sorting of people into internally homogeneous" neighborhoods,schools, and marriages is spurring long-run inequality. Cali- bration of a formal model suggests that these fears are misplaced. In order to increase the steady-state standard deviation of education by one percent, the correlation between neighbors' education would have to double, or the correlation between spouses' education would have to increase by one-third. In fact, both correlations have declined slightly over the past few decades. Sorting has somewhat more significant effects on intergenerational mobility than on inequality."
Socio Spatial Inequalities In Contemporary Cities
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Author : Alfredo Mela
language : en
Publisher: Springer
Release Date : 2019-05-11
Socio Spatial Inequalities In Contemporary Cities written by Alfredo Mela and has been published by Springer this book supported file pdf, txt, epub, kindle and other format this book has been release on 2019-05-11 with Science categories.
The book explores social inclusion/exclusion from a socio-spatial perspective, highlighting the active role that space assumes in shaping social phenomena. Unlike similar books, it does not discuss exclusion and inclusion in particular geographical contexts, but instead explains these phenomena starting from the dense and complex set of relationships that links society and space. It particularly focuses on social differences and how the processes of exclusion and inclusion can produce a highly spatialized understanding of them, for example when particular groups of people are perceived as being out of place. At the same time, within the context of the different approaches that policies adopt to contrast the phenomena of social exclusion, it examines the role of participation as an instrument to promote bottom-up inclusion and cohesion processes.
Sorting Education And Inequality
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Author : Raquel Fernández
language : en
Publisher:
Release Date : 2001
Sorting Education And Inequality written by Raquel Fernández and has been published by this book supported file pdf, txt, epub, kindle and other format this book has been release on 2001 with Community schools categories.
This paper examines the education literature through the lens of sorting. It argues that how individuals sort across neighborhoods, schools and households (spouses), can have important consequences for the acquisition of human capital and inequality. It discusses the implications of different education finance systems for sorting and analyzes the efficiency and welfare properties of these in static and dynamic frameworks.