A HEDONIC MODEL OF INTERREGIONAL WAGES,RENTS, AND AMENITY VALUES*

ABSTRACT This paper develops a general multimarket hedonic model appropriate for a national, interregional study of wages, housing prices, and location-specific amenities. The model encompasses the effects of interregional location, intraurban location, and city size. Typically, hedonic studies focus on a single market such as labor or housing and ignore interactions implicit in a more global compensation mechanism. Examination of the comparative statics of our model indicates that single-market differentials are partial prices and are unreliable measures of amenity values in an interregional context. Unbiased amenity values are estimated for a comprehensive set of amenities using data on housing prices for 34,414 households and wages for 46,004 workers from the 1980 Census of Population and Housing. Statistically significant differences in housing prices and wages are found due to amenities.     

INTERREGIONAL KNOWLEDGE SPILLOVERS AND OCCUPATIONAL CHOICE IN A MODEL OF FREE TRADE AND ENDOGENOUS GROWTH*

ABSTRACT A two region model of horizontal innovation with free trade and occupational choice is used to examine the spatial patterns of innovation and manufacturing industry in interior and core‐periphery long‐run equilibria. The inclusion of skill heterogeneity among workers creates a tension between stabilizing productivity effects that coincide with reallocations of workers across industries, and destabilizing productivity effects that arise with localized stocks of knowledge capital. We find that while core‐periphery equilibria are always saddlepath stable, interior equilibria are saddlepath stable when knowledge spillovers exceed a threshold level but are unstable otherwise. In addition, incorporating skill heterogeneity into the model allows for interior equilibria with asymmetric shares for innovation and industry.     

PRODUCTIVITY AND THE DENSITY OF HUMAN CAPITAL*

ABSTRACT We estimate a model of urban productivity in which the agglomeration effect of density is enhanced by a metropolitan area's stock of human capital. Estimation accounts for potential biases due to the endogeneity of density and industrial composition effects. Using new information on output per worker for U.S. metropolitan areas along with a measure of density that accounts for the spatial distribution of population, we find that a doubling of density increases productivity by 2–4 percent. Consistent with theories of learning and knowledge spillovers in cities, we demonstrate that the elasticity of average labor productivity with respect to density increases with human capital. Metropolitan areas with a human capital stock one standard deviation below the mean realize no productivity gain, while doubling density in metropolitan areas with a human capital stock one standard deviation above the mean yields productivity benefits that are about twice the average. These patterns are particularly pronounced in industries where the exchange of information and sharing of ideas are important parts of the production process.     

CONSTRUCTION COSTS AND THE SUPPLY OF HOUSING STRUCTURE*

ABSTRACT Construction costs account for the bulk of the price of new houses in most markets, but their study has been relatively neglected. We document that there are economically large differences in construction costs across U.S. housing markets. We also estimate a very elastic supply for physical structure; hence, differences in construction activity across markets do not explain the variation in costs. Supply shifters that collectively do account for differences in building costs include the extent of unionization within the construction sector, local wages, local topography in terms of the presence of high hills and mountains, and the local regulatory environment.     

SPATIAL MOBILITY AND COMMUTING: THE CASE OF TWO‐EARNER HOUSEHOLDS*

ABSTRACT We examine the effects of the spatial configuration of workers' residence and workplace location on intraregional residential and job moving decisions of workers belonging to two‐earner households. We hypothesize that two‐earner households' residential mobility depends positively on the commuting distance of both spouses, but negatively on the distance between workplaces. Further, we hypothesize that workers' job mobility depends positively on the worker's commuting distance, negatively on the spouse's commuting distance, and positively on the distance between workplaces. Using data for Denmark, it appears that these hypotheses hold, and that the effects of the spatial configuration are rather large.     

THE DETERMINANTS OF THE RECENT INTERREGIONAL MIGRATION FLOWS IN ITALY: A PANEL DATA ANALYSIS*

ABSTRACT This study investigates the determinants of interregional migration flows in Italy in the light of the upsurge occurred in 1996, after two decades of decreasing internal migration rates. The fixed‐effect vector decomposition estimator (FEVD) is applied to a gravity model using bilateral migration flows for the period 1996–2005. It is shown that the FEVD improves the estimates with respect to the traditional panel data estimators. The GDP per capita and the unemployment rate appear to be the key determinants whose changes push migrants out from their regions and direct them to “better off” destinations. Migrants leaving the regions in the Center‐North respond differently to the push and pull forces compared to southern migrants. The dynamic model provides evidence for the presence of social networks, which in this analysis take place for each pair of regions.     

WAGE AND MOBILITY EFFECTS OF LEGALIZATION: EVIDENCE FROM THE NEW IMMIGRANT SURVEY*

ABSTRACT Using New Immigrant Survey data, we identify immigrants who were unauthorized to work prior to obtaining Legal Permanent Resident status, and examine whether lacking legal status to work in the United States constrains employment outcomes of illegal immigrants. The data reveal no evidence of improved employment outcomes attributable to legal status, except among the high‐skilled. In light of evidence that unauthorized immigrants experienced increased wages as a result of receiving amnesty through the 1986 Immigration and Reform Control Act, we interpret the results as consistent with a reduced threat of employer sanctions combined with widespread availability of false work authorization documents.     

THE DEMAND AND SUPPLY OF CHILD CARE: THE CASE OF THE CITY OF WATERLOO, ONTARIO*

The intention of this paper is to stimulate research on the demand and supply of child care services, an issue that has been largely neglected by geographers, although many of the problems involved lend themselves to geographical analysis. In addition, as the female labour force participation rate, the divorce rate, and the incidence of lone-parent families increase, so do the need for and importance of child care. We review the types of child care available in North America and provide statistics to demonstrate that the supply of child care falls short of demand. Furthermore, for the city of Waterloo, Ontario, through the use of 1981 and 1986 Census data we demonstrate that not only is the supply of licensed day care spaces insufficient to meet the demand, but also it is spatially arranged in a suboptimal way. Through population projections and net migration analyses we demonstrate that the demand for child care spaces in the near future is more likely to intensify in the periphery of the city, where the current supply is nonexistent. We thus argue that locational criteria should play a prominent role in the practice of licensing new day care centres. Cet article vise à encourager la recherche sur I'offre et la demande de services de garderie. Ce sujet a été largement négligé par les géographes měme si beaucoup des pro-blèmes rencontrés sont liés à des facteurs géographiques. De plus, la participation des femmes au marché du travail augmentant ainsi que le taux de divorce et le nombre de families monoparentales, les garderies deviennent de plus en plus nécessaires et importantes. Nous passons en revue les différents types de garderies qu'il est possible de trouver en Amérique du Nord et nous présentons des statistiques démontrant que le nombre actuel de garderies ne satisfait pas la demande. D'autre part, à I'aide des données du recensement canadien de 1981 et 1986 pour la ville de Waterloo, Ontario, nous prouvons que non seulement le nombre de places dans les garderies licenciées est insuffisant mais aussi que leur location géographique n'est pas optimale. À I'aide des études sur la population future et la migration nette, nous démontrons que la demande de garderies augmentera vraisemblablement à la périphérie de la ville où les garderies sont actuellement inexistantes. Par conséquent, nous estimons que le critère de localisation doit jouer un rǒle prédominant dans I'octroi des permis d'établissement de nouvelles garderies.