An empirical model of joint decisions of where to live and where to work demonstrates that individuals make residential and job location choices by trading off wages, housing prices, and commuting costs. Wages are higher in metropolitan markets, but housing prices are also higher in urban areas....

A utility maximizing framework is used to model how wages, housing prices, and commuting time affect joint decisions of where to live and where to work. The implied multinomial logit model yields plausible estimates of the role of economic variables on joint residence/job location choices.