On the geography of inequality: labour sorting in general equilibrium

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dc.coverageDOI: 10.1080/17421772.2023.2271519
dc.creatorTruffa, Santiago
dc.creatorMontecinos, Alexis
dc.date2024
dc.date.accessioned05-01-2026 18:23
dc.date.available05-01-2026 18:23
dc.description<p>We study how cities’ amenities and limited housing supply contribute to aggregate wage inequality and affect housing prices through the sorting of heterogeneous skilled workers. We develop a general equilibrium model where workers differ along a continuum of skills and compete for limited housing. Our analysis suggests that spatial sorting accounts for 7.5% of the aggregate wage dispersion, increases average housing prices by 20–40% in constrained cities, and makes the economy 1.9% more productive. In addition, we evaluate a place-based policy that aims to expand the supply of houses in 1% of constrained cities and find that it improves aggregate productivity between 0.2% and 0.4%. However, the place-based policy has the unintended consequence of aggravating aggregate wage inequality by the same magnitude.</p>eng
dc.identifierhttps://investigadores.uandes.cl/en/publications/ef6793bc-39cb-48d3-8294-66de838e1b76
dc.languageeng
dc.rightsinfo:eu-repo/semantics/openAccess
dc.sourcevol.19 (2024) nr.3 p.324-344
dc.subjecthousing
dc.subjectinequality
dc.subjectlabour sorting
dc.subjectplace-based policies
dc.subjectSDG 11 - Sustainable Cities and Communities
dc.titleOn the geography of inequality: labour sorting in general equilibriumeng
dc.typeArticleeng
dc.typeArtículospa
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