A Look at Geographic Differences in Income and Cost of Living

Campbell, Harrison S.; James, Ryan D.

doi:10.1080/23754931.2020.1725604

Cited by 8 publications

(4 citation statements)

References 30 publications

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“…In virtually every state‐level analysis, RTW is indeed negative and significant (e.g., Cebula, 1980; Cebula et al., 2017), but empirical analyses at the metropolitan level are not so consistent. Ostrosky (1983), for example, found the expected significant influence of unionization on cost‐of‐living but Campbell & James (2020) did not find similar significance in their recent study of 96 metropolitan areas. More interesting still, when Hogan (1984) tested RTW against the individual components of living costs (food at home, shelter, transportation, etc.)…”

Section: Income and Cost‐of‐living: Are Less Equal Places More Costly?mentioning

confidence: 99%

“…On the other hand, because cost‐of‐living does not fully adjust downward, economic well‐being in less prosperous regions can suffer when low or declining income is met with less‐than‐proportional changes in living costs. Thus, living costs associated with wage growth, especially in large “superstar” cities like Boston, San Francisco, and Seattle are likely to be shouldered by less mobile, lower income households especially if it is sufficiently strong to raise overall income per capita (Campbell and James, 2020).…”

Section: Income and Cost‐of‐living: Are Less Equal Places More Costly?mentioning

confidence: 99%

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Income and cost of living: Are less equal places more costly?

Campbell

2021

Social Science Quarterly

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Objective This study empirically investigates the impact of economic inequality on the cost of living in U.S. metropolitan areas. Methods Using a special Census tabulation, a standard cost‐of‐living model is sequentially augmented with measures of poverty and income inequality in a cross‐sectional regression analysis of 90 metropolitan areas; interaction and regional effects are also explored. Results Higher costs of living are associated with increasing economic inequality, especially in the distribution of metropolitan income. The effects of household poverty are significant but less consistent. Conclusions Reducing economic inequality would produce benefits enjoyed by all metropolitan residents via lower living costs. The benefits are likely to be greater in large, fast growing areas where income disparities are pronounced.

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Section: Income and Cost‐of‐living: Are Less Equal Places More Costly?mentioning

confidence: 99%

Section: Income and Cost‐of‐living: Are Less Equal Places More Costly?mentioning

confidence: 99%

Income and cost of living: Are less equal places more costly?

Campbell

2021

Social Science Quarterly

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“…Income elasticity analysis aims to determine the degree of change in expenditure effect by a unit change in income. This study analyses the relationship between income and basic needs expenditure due to the importance of income as the factor of household expenses and living costs (Campbell & James, 2020;Wahab et al, 2018). Wahab et al (2018) found that household income elasticity varies depending on family income segmentation, which shows that households respond differently to changes in income.…”

Section: Lifestyle and Cost Of Living Analysismentioning

confidence: 99%

Living Style and Cost of Living: A Cross-Section Analysis of B40 Households in Malaysia

Ismail,

Daud,

Mohd

et al. 2023

MAJCAFE

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The cost of living has become an economic problem for everyone. Studies on the cost of living often connect income and inflation as the cost of living factors. This study aims to look from a different perspective by analysing the influence of lifestyle on the household cost of living in Malaysia. Lifestyle changes are one effect that arises from changes in household income and living standards. Households’ arrangement of upgrading basic needs by consuming more expensive and better-quality goods is defined as lifestyle and it is determined using household income elasticities. This study uses the Malaysian Household Expenditure Survey (HES) 2016 data. Engel’s Curve theory is applied to explain the relationship of household expenditure across income groups. Using the OLS regression model, income and expenditure elasticities are estimated. This study discovered that households had an increased rate of expenditure on basic needs more than income increases and we conclude that lifestyle affects the cost of living. Transportation expenditures represent the most significant lifestyle change influencing the cost of living among B40 households. Based on the findings, the researchers suggest that the government encourage a sustainable lifestyle based on specific expenditure groups to control household living costs.

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“…Not surprisingly, a body of research addressing potential determinants of geographic living-cost differentials eventually appeared, with the emphasis thereof reflecting the major geographic frames of reference in which the living-cost differentials were observed. For example, the earlier research initially focused on cities and metropolitan/urban areas (Campbell & James, 2020;Cebula, 1980Cebula, , 1986Cebula, , 1989Cecchetti et al, 2002;Chien & Mistry, 2013;Cobas, 1978Cobas, , 1984Curran et al, 2016;Hogan, 1983Hogan, , 1984Ostrosky, 1983Ostrosky, , 1986Winters, 2009). Subsequent research focused interest on the topic in terms of counties (Cebula et al, 1992;Kurre, 1992Kurre, , 2000Kurre, , 2003Langston et al, 1985), and, finally, did so in terms of states (Aten et al, 2012;McMahon, 1991;McMahon & Melton, 1978).…”

Section: Introductionmentioning

confidence: 99%

An exploratory study of the impact of tax freedom on geographic living‐cost differentials

Cebula

Duquette

Jolley

2023

American J Econ Sociol

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In the United States, there exist enormous geographic differentials in the cost of living. A sound, basic understanding of factors that influence such geographic living‐cost differentials is important to help formulate useful policies to address various contemporary economic and social problems such as public‐school funding across counties. In this exploratory study of the effects of tax freedom on geographic living‐cost differentials, the following hypothesis is investigated using panel data for the period 2009 through 2020. The higher the average overall freedom from taxation in a state in the forms of personal income taxation, property taxation, and sales taxation, the lower the overall cost of living in the state. In this exploratory study, strong empirical support is obtained for this heretofore effectively overlooked hypothesis.

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A Look at Geographic Differences in Income and Cost of Living

Cited by 8 publications

References 30 publications

Income and cost of living: Are less equal places more costly?

Income and cost of living: Are less equal places more costly?

Living Style and Cost of Living: A Cross-Section Analysis of B40 Households in Malaysia

An exploratory study of the impact of tax freedom on geographic living‐cost differentials

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