Evaluating the Value of Local Employment and Entrepreneurship with a Spatial Hedonic Approach: Case Study of London
42 , 2018-02-28
Assessing the value of a local area from the viewpoints of employment and entrepreneurship has become a key focus for the future development of these areas. This study assesses their value by using the land price function with a geographically weighted regression model of London land prices, using employment and entrepreneurship as factors. In order to assess these values, various specific data scores—such as those related to ethnic groups, green areas, crime rates, education scores, unemployment rates, number of entrepreneurs, and environmental quality—were taken into account. The results indicate that variables related to employment and entrepreneurship have a positive impact on the local area value in London as shown by land price, while those related to unemployment have a negative impact. Moreover, although the city center of London has benefitted more in value terms than the outskirts of London have, a few specific policies related to startups and entrepreneurship have succeeded in connecting these areas to existing companies and entrepreneurs. In general, large cities may be better equipped to promote such startup and entrepreneurship policies under local industry plans for future development.