Commuting, Housing, and Labor Markets

Reference work entry

Abstract

In the monocentric model, commuting is viewed as a burden whose cost shapes the spatial structure of cities to a considerable extent. This view has been challenged by the finding that actual commuting patterns are far from efficient. However, this “wasteful” commuting is better interpreted as an indication of labor market frictions that are traded off against commuting frictions than as a neglect of commuting costs. Urban sprawl results from the decreasing importance of physical space that was the consequence of the automobile and is fundamentally consistent with the basic insights of the monocentric model. Large and diversified urban labor markets flourish when space restrictions are relaxed because this facilitates the matching of jobs and workers along other dimensions. Having a large mortgage puts more stress on this allocation mechanism.

Keywords

Labor Market House Price Housing Market Residential Location Reservation Wage 
These keywords were added by machine and not by the authors. This process is experimental and the keywords may be updated as the learning algorithm improves.

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Copyright information

© Springer-Verlag Berlin Heidelberg 2014

Authors and Affiliations

  1. 1.Department of Spatial EconomicsVU UniversityAmsterdamThe Netherlands

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