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Backward-bending labor supply and urban location

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  • Tabuchi, Takatoshi

Abstract

This study attempts to combine a labor supply model with a housing location model. We focus on the trade-off between hours of work, commute times, and leisure time as well as the trade-off between the consumption of a good, housing space, and leisure time. We show that both labor supply and urban location choice have an inverted U-shaped relationship regarding the wage rate. These results are empirically shown by using Japanese data on the hours of work and commute times by household income class and on the number of households by income class.

Suggested Citation

  • Tabuchi, Takatoshi, 2023. "Backward-bending labor supply and urban location," Regional Science and Urban Economics, Elsevier, vol. 102(C).
    • Handle: RePEc:eee:regeco:v:102:y:2023:i:c:s0166046223000704
    DOI: 10.1016/j.regsciurbeco.2023.103935
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    References listed on IDEAS

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    1. Tabuchi, Takatoshi, 2019. "Do the rich and poor colocate in large cities?," Journal of Urban Economics, Elsevier, vol. 113(C).
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    More about this item

    Keywords

    Labor supply; Leisure time; Residential location; U-shaped relationships;
    All these keywords.

    JEL classification:

    • J22 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Time Allocation and Labor Supply
    • R21 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Housing Demand
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets

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