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Spatial and Social Mobility

Author

Listed:
  • Rainald Borck
  • Matthias Wrede
Abstract
This paper analyzes the relationship between spatial mobility and social mobility. It develops a two-skill-type spatial equilibrium model of two regions with location preferences where each region consists of an urban area which is home to workplaces and residences and an exclusively residential suburban area. The paper demonstrates that both segregation and regional income inequality are negatively correlated with relative regional social mobility. In the model, segregation is driven by differences between urban and residential areas in commuting cost differences between high-skilled and low-skilled workers, whereas regional income inequality also depends on the magnitude of the productivity gap of low-skilled relative to high-skilled workers. A larger productivity gap does not affect segregation, but causes higher income inequality and lower relative mobility in the respective region.

Suggested Citation

  • Rainald Borck & Matthias Wrede, 2015. "Spatial and Social Mobility," CESifo Working Paper Series 5675, CESifo.
    • Handle: RePEc:ces:ceswps:_5675
    as

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    References listed on IDEAS

    as
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    Cited by:

    1. Gohl, Niklas, 2019. "House prices and spatial mobility: Lock-in effects on the German rental market," VfS Annual Conference 2019 (Leipzig): 30 Years after the Fall of the Berlin Wall - Democracy and Market Economy 203557, Verein für Socialpolitik / German Economic Association.

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    More about this item

    Keywords

    social mobility; spatial mobility; segregation; inequality;
    All these keywords.

    JEL classification:

    • J62 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Job, Occupational and Intergenerational Mobility; Promotion
    • R13 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - General Equilibrium and Welfare Economic Analysis of Regional Economies

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