Wages, rents, unemployment, and the quality of life

Matthias Wrede

FAU Discussion Papers in Economics from Friedrich-Alexander University Erlangen-Nuremberg, Institute for Economics

Abstract: Combining a spatial equilibrium model with a search-matching unemployment model, this paper analyzes the willingness to pay for regional amenities and the regional quality of life when wages, rents, and unemployment risk compensate for local amenities and disamenities. The results are compared with those obtained from the Rosen-Roback approach. Furthermore, the paper shows that the wage curve is negatively sloped for quasi-linear utility. Specifically, the wage rate increases and the unemployment ratio decreases in response to an increase in the amenity level if the amenity is marginally more beneficial to producers than to consumers. As an illustration of the unemployment-adjusted quality-of-life measure, the quality of life in West German counties is estimated.

Keywords: quality of life; residential mobility; unemployment; job search; matching (search for similar items in EconPapers)
JEL-codes: H73 J61 J64 R12 R13 R14 (search for similar items in EconPapers)
Date: 2012
New Economics Papers: this item is included in nep-dge, nep-geo, nep-hap, nep-lab and nep-ure
References: Add references at CitEc
Citations: View citations in EconPapers (8)

Downloads: (external link)
https://www.econstor.eu/bitstream/10419/59572/1/718215222.pdf (application/pdf)

Related works:
Working Paper: Wages, Rents, Unemployment, and the Quality of Life (2013)
Working Paper: Wages, Rents, Unemployment, and the Quality of Life (2012)
Working Paper: Wages, rents, unemployment, and the quality of life (2012)
Working Paper: Wages, Rents, Unemployment, and the Quality of Life (2012)
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:zbw:iwqwdp:012012r

Access Statistics for this paper

More papers in FAU Discussion Papers in Economics from Friedrich-Alexander University Erlangen-Nuremberg, Institute for Economics Contact information at EDIRC.
Bibliographic data for series maintained by ZBW - Leibniz Information Centre for Economics ().