The Determinants of Joint Residential and Job Location Choices: A Mixed Logit Approach

This paper empirically investigates the household's decision to reside and work either inthe central metropolitan area, or in the surrounding nonmetropolitan area, or to commutebetween the two regions. As economic theory suggests the location decisionamounts to trading off wages, housing costs, and commuting time. A mixed logit modelis employed to quantify the interaction effects of these economic factors in the jointresidential and job location choice. The empirical approach does not rely on the restrictiveIIA assumption and allows for arbitrary correlation patterns between coefficients.Using data from a recent survey of more than half a million German households, theelasticities of individual location choice with respect to wages, housing costs, and commutingtime are estimated. The results show that individual valuations of these factorsare of the expected signs but vary substantially in the population. Shifts in consumersurplus and in the spatial distribution of households that are associated with changes inthe determinants of location choice are calculated based on the empirical estimates.Location choice; commuting; metropolitan area; discrete choice models; mixed logit; simulation based estimation.

The Capitalization of Public Services and Amenities into Land Prices – Empirical Evidence from German Communities

Applying the hedonic approach to land prices, this paper investigates the capitalization of public services and pure amenities in a cross section of German communities. Possible spill-over effects from neighboring municipalities are explicitly included in the analysis and prove to be of considerable importance. Estimates of the impacts of local attributes on land prices are obtained taking into account the spatial structure among unobserved variables. The results confirm that differences in land prices can largely be attributed to local conditions and policies. This implies a significant degree of mobility as well as a sizeable valuation of local attributes by German households.Land Prices, Hedonic Regression, Spatial Dependence

Spatial Implications of Minimum Wages

This paper addresses possible consequences of a minimum wage in a spatial context. An empirical analysis utilizing German data shows that a signifcant spatial wage structure exists and that, as a consequence, the share of workers earning wages below a minimum wage will be particularly high in rural counties even if we control for educational and occupational differences. A theoretical analysis discusses the implications for the spatial structure of the economy and shows that while the wages in the countryside will be affected positively, wages will decline in the city, where employment and population rise. Workers in the city will further suffer from an increase in housing costs. This supports concerns that urban poverty might increase as a result of the introduction of a minimum wage.Minimum Wages; Urban Poverty; Spatial Wage Structure; Mobility; Economies of Agglomeration

Quality of Life in the Regions - Results for German Counties

In order to assess differences in living conditions across German regions we apply the hedonic approach of Rosen (1979) and Roback (1982) to land-price and wage differences across Germany’s counties. Employing a recent survey of more than half a million Germans on a wide range of social and political issues we confirm that differences in amenities give rise to substantial differences in land prices. With regard to wages, however, we find only little effects of amenities. Relying on the land-price effects we assess the quality of life in each of the German counties and provide a comprehensive ranking.Land prices; regional income differentials; hedonic regression; quality of life; compensating wage differentials

The Determinants of Joint Residential and Job Location Choices: A Mixed Logit Approach

This paper empirically investigates the household's decision to reside and work either inthe central metropolitan area, or in the surrounding nonmetropolitan area, or to commutebetween the two regions. As economic theory suggests the location decisionamounts to trading off wages, housing costs, and commuting time. A mixed logit modelis employed to quantify the interaction effects of these economic factors in the jointresidential and job location choice. The empirical approach does not rely on the restrictiveIIA assumption and allows for arbitrary correlation patterns between coefficients.Using data from a recent survey of more than half a million German households, theelasticities of individual location choice with respect to wages, housing costs, and commutingtime are estimated. The results show that individual valuations of these factorsare of the expected signs but vary substantially in the population. Shifts in consumersurplus and in the spatial distribution of households that are associated with changes inthe determinants of location choice are calculated based on the empirical estimates

The Capitalization of Public Services and Amenities into Land Prices: Empirical Evidence from German Communities

Applying the hedonic approach to land prices, this paper investigates the capitalization of public services and pure amenities in a cross section of German communities. Possible spill-over effects from neighboring municipalities are explicitly included in the analysis and prove to be of considerable importance. Estimates of the impacts of local attributes on land prices are obtained taking into account the spatial structure among unobserved variables. The results confirm that differences in land prices can largely be attributed to local conditions and policies. This implies a significant degree of mobility as well as a sizeable valuation of local attributes by German households

Die Wohnortwahl privater Haushalte und die Bewertung lokaler Standortfaktoren in den sächsischen Gemeinden

Den Bürgern Lebensqualität zu bieten, zählt zu den essenziellen Aufgaben der Politik. Nun stellt sich aber nicht nur Kommunalpolitikern die Frage, was genau denn eigentlich die örtliche Lebensqualität ausmacht. Spontan fallen einem viele unterschiedliche Faktoren ein, aber welche sind den Menschen besonders wichtig und welche weniger? Solchen Fragen auf den Grund zu gehen, ist das Ziel des vorliegenden Beitrags. Er nutzt die implizit auf den Immobilienmärkten der Gemeinden Sachsens enthaltene Information, um die Wertschätzung der Bürger für einzelne Standortfaktoren zu bestimmen.Wohnstandort; Privater Haushalt; Sachsen

Essays on Household Mobility and the Quality of Life in Germany

Household Mobility; Migration; Quality of Life

Quality of Life in the Regions - Results for German Counties

In order to assess differences in living conditions across German regions we apply the hedonic approach of Rosen (1979) and Roback (1982) to land-price and wage differences across Germanys counties. Employing a recent survey of more than half a million Germans on a wide range of social and political issues we confirm that differences in amenities give rise to substantial differences in land prices. With regard to wages, however, we find only little effects of amenities. Relying on the land-price effects we assess the quality of life in each of the German counties and provide a comprehensive ranking