Dual Earners, Urban Labor Markets and Housing Demand

Tinbergen Institute Working Paper No. 2003-084/3

32 Pages Posted: 24 Nov 2003

See all articles by Jan Rouwendal

Jan Rouwendal

VU University Amsterdam - Department of Spatial Economics; Tinbergen Institute

Willemijn van der Straaten

Wageningen University - Economics of Consumers and Households

Date Written: September 29, 2003

Abstract

This paper replicates Costa and Kahn's analysis of locational choices of couples of highly educated persons for the Netherlands. We find increasing concentration of such power couples in the urbanized western part of the country. This trend occurs in spite of the absence of an urban wage premium for university-educated workers and the concentration of congestion there. We find that power couples locate more often in medium sized and larger cities than otherwise comparable households and that they are relatively often owner-occupiers and live in more expensive housing. Their commutes are relatively short when it is taken into account that it is more difficult for these households to find suitable combinations of employment and residence locations than it is for single earner households. A probable explanation for these findings is that power couples use their relatively large purchasing power to outbid other households from locations that are especially attractive to them, as is predicted by household location theory.

Keywords: dual earner households, power couples, urban wages, location choice, commuting distance, housing demand

JEL Classification: R12, R21, D13

Suggested Citation

Rouwendal, Jan and van der Straaten, Willemijn, Dual Earners, Urban Labor Markets and Housing Demand (September 29, 2003). Tinbergen Institute Working Paper No. 2003-084/3, Available at SSRN: https://ssrn.com/abstract=459520 or http://dx.doi.org/10.2139/ssrn.459520

Jan Rouwendal (Contact Author)

VU University Amsterdam - Department of Spatial Economics ( email )

De Boelelaan 1105
1081HV Amsterdam
Netherlands

Tinbergen Institute ( email )

Burg. Oudlaan 50
Rotterdam, 3062 PA
Netherlands

Willemijn Van der Straaten

Wageningen University - Economics of Consumers and Households ( email )

P.O. Box 8130
Wageningen, 6700 EW
Netherlands

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