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Do Two-earner Households Base Their Choice of Residential Location on Both Incomes?

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  • Diana Mok

    (Department of Geography, University of Western Ontario, Social Science Centre, London, Ontario, N6A5C2, Canada, dmok3@uwo.ca)

Abstract

This article focuses on the role of individual incomes in the residential location decisions of two-earner households. Conventional studies often treat households as a black box and describe them by a single utility function. The article raises the question, "Is the household utility paradigm an adequate framework for understanding the location decisions of two-earner households?". It tests an implication of the household utility paradigm-the income-pooling hypothesis for location decisions. The results provide evidence for rejecting the hypothesis among childless families, but fail to provide evidence for rejecting it when children are present. The results raise the need to address intrahousehold dynamics in modelling location decisions.

Suggested Citation

  • Diana Mok, 2007. "Do Two-earner Households Base Their Choice of Residential Location on Both Incomes?," Urban Studies, Urban Studies Journal Limited, vol. 44(4), pages 723-750, April.
    • Handle: RePEc:sae:urbstu:v:44:y:2007:i:4:p:723-750
    DOI: 10.1080/00420980601184745
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    2. Giménez-Nadal, José Ignacio & Molina, José Alberto & Velilla, Jorge, 2022. "Trends in commuting time of European workers: A cross-country analysis," Transport Policy, Elsevier, vol. 116(C), pages 327-342.
    3. Abe, Yukiko, 2011. "Family labor supply, commuting time, and residential decisions: The case of the Tokyo Metropolitan Area," Journal of Housing Economics, Elsevier, vol. 20(1), pages 49-63, March.
    4. Chunil Kim & Choongik Choi, 2019. "Towards Sustainable Urban Spatial Structure: Does Decentralization Reduce Commuting Times?," Sustainability, MDPI, vol. 11(4), pages 1-28, February.
    5. Gimenez-Nadal, José Ignacio & Molina, José Alberto & Velilla, Jorge, 2016. "Commuting Time and Sex Ratios in the US," IZA Discussion Papers 9933, Institute of Labor Economics (IZA).
    6. Ettema, Dick, 2010. "The impact of telecommuting on residential relocation and residential preferences: A latent class modelling approach," The Journal of Transport and Land Use, Center for Transportation Studies, University of Minnesota, vol. 3(1), pages 7-24.

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