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

Author

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  • Carl Gaigné

    (SMART - Structures et Marché Agricoles, Ressources et Territoires - INRAE - Institut National de Recherche pour l’Agriculture, l’Alimentation et l’Environnement - Institut Agro Rennes Angers - Institut Agro - Institut national d'enseignement supérieur pour l'agriculture, l'alimentation et l'environnement, ULaval - Université Laval [Québec])

  • Hans R A Koster

    (HSE - Higher School of Economics [Perm] - MAI - National research university, CEPR - Center for Economic Policy Research, VU - Vrije Universiteit Amsterdam [Amsterdam])

  • Fabien Moizeau

    (CREM - Centre de recherche en économie et management - UNICAEN - Université de Caen Normandie - NU - Normandie Université - UR - Université de Rennes - CNRS - Centre National de la Recherche Scientifique, TEPP - Travail, Emploi et Politiques Publiques - UPEM - Université Paris-Est Marne-la-Vallée - CNRS - Centre National de la Recherche Scientifique)

  • Jacques-François Thisse

    (HSE - Higher School of Economics [Perm] - MAI - National research university, CEPR - Center for Economic Policy Research, UCL - Université Catholique de Louvain = Catholic University of Louvain)

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.

Suggested Citation

  • Carl Gaigné & Hans R A Koster & Fabien Moizeau & Jacques-François Thisse, 2022. "Who Lives Where in the City? Amenities, Commuting and Income Sorting," Post-Print halshs-03379541, HAL.
    • Handle: RePEc:hal:journl:halshs-03379541
    DOI: 10.1016/j.jue.2021.103394
    Note: View the original document on HAL open archive server: https://shs.hal.science/halshs-03379541
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    More about this item

    Keywords

    Cities; Social stratification and inequality; Income; Amenities; Commuting costs;
    All these keywords.

    JEL classification:

    • R14 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Land Use Patterns
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • R53 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Public Facility Location Analysis; Public Investment and Capital Stock
    • Z13 - Other Special Topics - - Cultural Economics - - - Economic Sociology; Economic Anthropology; Language; Social and Economic Stratification

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