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Regional Labour Market Dynamics, Housing and Migration

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  • Kari Hämäläinen
  • Petri Böckerman

Abstract

The aim of this study is to explore the dynamics of regional labour markets in terms of migration flows. In particular, the study explores the impact of labour markets and housing markets on migration. The internal and the external re-organisations of regional labour markets are shown to be related. An increase in internal turnover within establishments in regional labour markets is found to increase net-migration. This effect arises mainly from a reduction in out-migration. Housing markets constitute binding constraints for migration flows through housing prices and the share of owner-occupancy housing. The results imply that an increase in regional housing prices and a large share of owner-occupancy housing discourages net-migration to a region by reducing inmigration. The out-migration rate remains largely unaffected by housing markets.

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Bibliographic Info

Paper provided by Government Institute for Economic Research Finland (VATT) in its series Discussion Papers with number 284.

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Date of creation: 28 Oct 2002
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Handle: RePEc:fer:dpaper:284

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Keywords: Dynamics of regional labour markets; housing; migration flows; panel data;

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References

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  1. Price V. Fishback & William C. Horrace & Shawn Kantor, 2001. "Do Federal Programs Affect Internal Migration? The Impact of New Deal Expenditures on Mobility During the Great Depression," NBER Working Papers 8283, National Bureau of Economic Research, Inc.
  2. Daron Acemoglu, 2002. "Technical Change, Inequality, and the Labor Market," Journal of Economic Literature, American Economic Association, vol. 40(1), pages 7-72, March.
  3. Hannu Tervo, 2001. "Does the compositional effect explain the association between rates of in-migration and out-migration?," ERSA conference papers ersa01p68, European Regional Science Association.
  4. Ghatak, Subrata & Levine, Paul & Price, Stephen Wheatley, 1996. " Migration Theories and Evidence: An Assessment," Journal of Economic Surveys, Wiley Blackwell, vol. 10(2), pages 159-98, June.
  5. Petri Böckerman & Mika Maliranta, 2001. "Regional disparities in gross job and worker flows in Finland," Finnish Economic Papers, Finnish Economic Association, vol. 14(2), pages 84-103, Autumn.
  6. Oswald Andrew J., 1996. "A Conjecture on the Explanation for High Unemployment in the Industrialized Nations : Part I," The Warwick Economics Research Paper Series (TWERPS) 475, University of Warwick, Department of Economics.
  7. Shaw, R Paul, 1986. "Fiscal versus Traditional Market Variables in Canadian Migration," Journal of Political Economy, University of Chicago Press, vol. 94(3), pages 648-66, June.
  8. Jaakko Pehkonen & Hannu Tervo, 1998. "Persistence and Turnover in Regional Unemployment Disparities," Regional Studies, Taylor & Francis Journals, vol. 32(5), pages 445-458.
  9. Antti Moisio, 2002. "Determinants of Expenditure Variation in Finnish Municipalities," Discussion Papers 269, Government Institute for Economic Research Finland (VATT).
  10. Contini, Bruno & Revelli, Riccardo, 1997. "Gross flows vs. net flows in the labor market: What is there to be learned?," Labour Economics, Elsevier, vol. 4(3), pages 245-263, September.
  11. Arellano, Manuel & Honore, Bo, 2001. "Panel data models: some recent developments," Handbook of Econometrics, in: J.J. Heckman & E.E. Leamer (ed.), Handbook of Econometrics, edition 1, volume 5, chapter 53, pages 3229-3296 Elsevier.
  12. Cameron, Gavin & Muellbauer, John, 1998. "The Housing Market and Regional Commuting and Migration Choices," Scottish Journal of Political Economy, Scottish Economic Society, vol. 45(4), pages 420-46, September.
  13. Richard Layard & Stephen Nickell, 1998. "Labour Market Institutions and Economic Performance," CEP Discussion Papers dp0407, Centre for Economic Performance, LSE.
  14. repec:ese:iserwp:99-16 is not listed on IDEAS
  15. Fields, Gary S, 1976. "Labor Force Migration, Unemployment and Job Turnover," The Review of Economics and Statistics, MIT Press, vol. 58(4), pages 407-15, November.
  16. Charles M. Tiebout, 1956. "A Pure Theory of Local Expenditures," Journal of Political Economy, University of Chicago Press, vol. 64, pages 416.
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Citations

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Cited by:
  1. Petri Böckerman & Mika Haapanen, 2013. "The effect of polytechnic reform on migration," Journal of Population Economics, Springer, vol. 26(2), pages 593-617, April.
  2. Gebremeskel H. Gebremariam & Tesfa G. Gebremedhin & Peter V. Schaeffer & Randall W. Jackson, 2008. "A Simultaneous Spatial Panel Data Model of Regional Growth Variation: An Empirical Analysis of Employment, Income, Migration and Local Public Services," Working Papers e07-12, Virginia Polytechnic Institute and State University, Department of Economics.
  3. David G. Blanchflower & Andrew J. Oswald, 2013. "Does High Home-Ownership Impair the Labor Market?," Working Paper Series WP13-3, Peterson Institute for International Economics.
  4. Garduno-Rivera, Rafael, 2010. "Effect of NAFTA on Mexico's Income Distribution in the Presence of Migration," 2010 Annual Meeting, July 25-27, 2010, Denver, Colorado 61895, Agricultural and Applied Economics Association.
  5. Gebremeskel H. Gebremariam & Tesfa G. Gebremedhin & Peter V. Schaeffer & Randall W. Jackson, 2008. "Modeling Regional Growth Spillovers: An Analysis of Employment Growth, Migration Behavior, Local Public Services and Household Income in Appalachia," Working Papers e07-13, Virginia Polytechnic Institute and State University, Department of Economics.
  6. Gintautas Bloze, 2009. "Interregional migration and housing structure in an East European transition country: A view of Lithuania 2001-2008," Baltic Journal of Economics, Baltic International Centre for Economic Policy Studies, vol. 9(2), pages 47-66, December.
  7. Gebremeskel Gebremariam & Tesfa Gebremedhin & Peter Schaeffer, 2010. "Analysis of county employment and income growth in Appalachia: a spatial simultaneous-equations approach," Empirical Economics, Springer, vol. 38(1), pages 23-45, February.
  8. Gebremariam, Gebremeskel H. & Gebremedhin, Tesfa G. & Schaeffer, Peter V., 2006. "An Empirical Analysis of County-Level Determinants of Small Business Growth Poverty in Appalachia: A Spatial Simultaneous-Equations Approach," 2006 Annual Meeting, February 5-8, 2006, Orlando, Florida 35465, Southern Agricultural Economics Association.

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