This paper proposes maximum likelihood estimators for panel seemingly unrelated regressions with both spatial lag and spatial error components. We study the general case where spatial effects are incorporated via spatial errors terms and via a spatial lag dependent variable and where the...

During the last few decades, aggregate wage growth has been very unevenly distributed across space in Germany. While wages in Southern German local labor markets rose by up to 28 log points, they increased only modestly or even declined in the north. Similar results apply to employment changes....

Many theories of residential mobility contend that individuals express a sequence of moving desires, intentions and expectations prior to moving. Much research has investigated how individuals form these pre-move thoughts, with a largely separate literature examining actual mobility. Only a few...

Residential mobility decisions are known to be made at the household level. However, most empirical analyses of residential mobility relate moving behaviour to the housing and neighbourhood satisfaction and pre-move thoughts of individuals. If partners in a couple do not share evaluations of...

Geographic school admissions criteria bind residential and school choices for some parents, and could create externalities in equilibrium for non-parents through displacement or higher rent. Through a dynamic structural model, we show that the policy decision of geographic versus non-geographic...

We analyse the convergence and heterogeneity of living standards between East and West Germany since unification. Based on data from the German Socio-Economic Panel (GSOEP), we compare total individual income of permanent adult residents, including retirees and the unemployed, of East and West...

This paper studies the influence of family, schools and neighborhoods on life-cycle earnings inequality. We develop an earnings dynamics model linking brothers, schoolmates and teenage parish neighbors using population register data for Denmark. We exploit differences in the timing of family...

We analyze the optimal regional pattern of public employment in an information-constrained second-best redistribution policy showing that regionally differentiated public employment can serve as an expenditure side tagging device, bypassing or relaxing the equity-efficiency trade-off. The...

The model of compensating differentials in regional labor markets was developed by Roback (1982). The model interprets regional differences in constant quality wages and rents as compensating firms and residents for inter-regional differences in amenities. The model assumes that the costs of...

We examine the residential segregation of workers and the unemployed in the 80 largest cities in Germany. Drawing on a large set of geo-referenced data for the period from 2000 until 2015, we are able to study the within-city distribution of unemployment in unprecedented detail. We document a...