Backward-bending Labor Supply and Urban Location

Tabuchi, Takatoshi (2022): Backward-bending Labor Supply and Urban Location.

Abstract

This paper is an attempt to combine a labor supply model with a housing location model. We focus on the trade-off between the 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 are inverted U-shaped in relation to 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.

• Item Type: MPRA Paper
• Language: English
• Keywords: labor supply; leisure time; residential location; U-shaped relationship
• Subjects: J - Labor and Demographic Economics > J2 - Demand and Supply of Labor > J22 - Time Allocation and Labor Supply; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R2 - Household Analysis > R21 - Housing Demand; R - Urban, Rural, Regional, Real Estate, and Transportation Economics > R3 - Real Estate Markets, Spatial Production Analysis, and Firm Location > R31 - Housing Supply and Markets

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