Job-Housing Separation and Income Level

DOI: https://doi.org/10.62517/jmsd.202612120

Author(s)

Yuan Ren

Affiliation(s)

School of Yuhui, China Women’s University, Beijing, China

Abstract

The commuting time of residents in Chinese major cities continues to increase with significant differences in job-housing separation across various city types and demographic groups. Using job search theory and efficiency wage theory, this study examines the relationship between job-housing separation and income levels in Chinese large cities. As the degree of job-housing separation increases, workers' income levels continue to rise. Second, regardless of wage levels, job-housing separation can lead to wage compensation, with workers at the lower end of the wage distribution being in a disadvantaged position. Third, the long-term effect of job-housing separation on income is more pronounced than the short-term effect. Fourth, Using the difference-in-differences model to overcome the model to reveal the causal relationship between residential-job separation and income level, the results show that change in wages between any two periods is mainly caused by the change in commuting time, and the long-term effect is greater than the short-term effect. The conclusion provides important insights for promoting a shift toward balanced job-housing distribution in urban areas.

Keywords

Urban Residents; Difference-in-Differences Model; Commuting Time; Income Level; Job-housing Separation

References

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