Spatial sorting of rich versus poor people in Jakarta
article
We test an adjusted version of the classic monocentric-city model to explain the
spatial sorting of rich versus poor people in Jakarta. We find that in Jakarta (1) the
urban rich tend to live in the city centre; (2) because of extreme congestion levels,
the elasticity between income and the opportunity cost of time spent commuting is
higher than the elasticity between income and demand for larger plots of residential
land; and (3) the motorbike is the most important and fastest mode of transport for
the urban poor. These findings contrast with existing evidence from the United States.
Both the logic of the monocentric-city model and empirical evidence suggest that the
urban rich in Jakarta tend to cluster in the city centre. However, empirical evidence
also suggests that the sorting of the rich and poor in Jakarta—as indicated by spatial
variation in income, expenditure and land prices—depends not only on distance from
the city centre but also on other neighbourhood characteristics, especially flood risk,
crime rates and the proximity of a commercial area.
spatial sorting of rich versus poor people in Jakarta. We find that in Jakarta (1) the
urban rich tend to live in the city centre; (2) because of extreme congestion levels,
the elasticity between income and the opportunity cost of time spent commuting is
higher than the elasticity between income and demand for larger plots of residential
land; and (3) the motorbike is the most important and fastest mode of transport for
the urban poor. These findings contrast with existing evidence from the United States.
Both the logic of the monocentric-city model and empirical evidence suggest that the
urban rich in Jakarta tend to cluster in the city centre. However, empirical evidence
also suggests that the sorting of the rich and poor in Jakarta—as indicated by spatial
variation in income, expenditure and land prices—depends not only on distance from
the city centre but also on other neighbourhood characteristics, especially flood risk,
crime rates and the proximity of a commercial area.
TNO Identifier
990324
Source
Buletin of Indonesian Economic Studies, 58(2), pp. 167-194.
Pages
167-194
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