NYU Furman Center Spring Speaker Series: Andrii Parkhomenko
Please join the NYU Furman Center for a lunchtime presentation:
Homeownership, Polarization, and Inequality
with
Dr. Andrii Parkhomenko, Assistant Professor
Marshall School of Business
University of Southern California
Monday, April 11th from 12:00 - 1:00 p.m. ET
Please register using this link.
Income inequality and job polarization have increased more in large U.S. cities. Dr. Parkhomenko argues that this can be explained by higher house price growth in big cities. Using a spatial equilibrium model with income heterogeneity and tenure choice, he shows that when middle-income households cannot afford to buy a house in large expensive cities, they disproportionately locate in smaller affordable cities. This empties out the middle of the skill distribution in large cities, making them more polarized and unequal. Empirical evidence supports these predictions. First, middle-income households are more likely to move to states with lower house prices than those with low or high income. Second, polarization and inequality grew more in commuting zones where prices increased the most since 1980. Counterfactual experiments show that policies that increase housing supply are not only welfare-improving but could also reduce job polarization and income inequality in large cities. At the same time, policies that promote homeownership without increasing housing supply have likely contributed to greater polarization and inequality in big cities.
About the Presenter: Andrii Parkhomenko is an assistant professor at the University of Southern California's Marshall School of Business. His research interests span urban economics, macroeconomics, and housing. His recent work focuses on the effects of telecommuting on the distribution of economic activity across space, the relationship between homeownership, employment polarization and income inequality, as well as nationwide effects of land use regulation. Andrii holds a BA in international economics from Kyiv National Economics University in Ukraine and a PhD in economics from Universitat Autonoma de Barcelona in Spain.
This event is open to members of the NYU community. Please register by clicking this RSVP link.