Titelaufnahme

Titel
On the road (again) : commuting and local employment elasticities in Germany / Oliver Krebs (University of Tübingen), Michael Pflüger (University of Würzburg, DIW Berlin and IZA) ; IZA Institute of Labor Economics
VerfasserKrebs, Oliver ; Pflüger, Michael
KörperschaftForschungsinstitut zur Zukunft der Arbeit
ErschienenBonn, Germany : IZA Institute of Labor Economics, March 2019
Ausgabe
Elektronische Ressource
Umfang1 Online-Ressource (46 Seiten) : Diagramme
SerieDiscussion paper ; no. 12257
URNurn:nbn:de:hbz:5:2-185773 
Zugriffsbeschränkung
 Das Dokument ist öffentlich zugänglich im Rahmen des deutschen Urheberrechts.
Volltexte
On the road (again) [1.53 mb]
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Verfügbarkeit In meiner Bibliothek
Zusammenfassung (Englisch)

This paper uses the quantitative spatial model with heterogeneous locations linked by costly goods trade, migration and commuting developed in Monte et al. (2018) to address the workings of local labor markets in Germany. One key contribution concerns the analysis of the role of the expenditure share of housing in the economy. We provide arguments that, in accordance with Rognlie (2015), for an economy-wide quantitative exercise, this share should be chosen lower than stipulated in much of the extant research. Our analyses show that the local general equilibrium employment and resident elasticities with respect to local productivity shocks are significantly higher with a lower housing share. Moreover, simple ex-ante observable commuting measures have very little predictive power for these general equilibrium elasticities when the housing share is small. The size of the housing share turns out to play no crucial role for two further results, however. First, employment and resident elasticities are very heterogeneous across German local labor markets, irrespective of the housing share. Second, the housing share has only little influence on the welfare effects and location patterns of counterfactual commuting cost reductions.