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> It's actually true that rising wages result in higher rents. Do you have a study you can point to, since this is trivial?
by SolaceQuantum 7y ago
> It's actually true that rising wages result in higher rents.
Do you have a study you can point to, since this is trivial?
- ethanbond 7y agoAside from self-evident truth, here's a study on just the impact of rising wages for the absolute lowest wage earners: https://mpra.ub.uni-muenchen.de/94238/1/MPRA_paper_94238.pdf https://mpra.ub.uni-muenchen.de/94238/1/MPRA_paper_94238.pdf > I empirically analyze the causal impact of the minimum wage increase on housing rents in the United States and Japan. In both countries, minimum wages hikes increase housing rents in urban areas: 10% minimum wage increase induces 1%-2% increase in the United States and 2.5%-5% increase in Japan. Now imagine a 10% raise for every earner.
- klyrs 7y ago> 10% minimum wage increase induces 1%-2% increase in the United States This shows that absolute rent is going up. Relative rent, the proportion of income going to rent, is going down. This frees up folks' money for other things and improves living conditions. > Now imagine a 10% raise for every earner. If everybody made the same exact amount, that would be relevant. With a $25k UBI, you'd see folks who previously earned $50k getting a 50% raise and those making $500k getting a 5% raise. Right now, people in poverty are often spending 40-60% of their income on rent. Not so of people making $500k.