Advanced Search
MyIDEAS: Login to save this paper or follow this series

Migration, Capital Formation, and House Prices

Contents:

Author Info

  • Grossmann, Volker
  • Schäfer, Andreas
  • Steger, Thomas M.

Abstract

We investigate the effects of interregional labor market integration in a two-sector, overlapping-generations model with land-intensive production in the non-tradable goods sector (housing). To capture the response to migration on housing supply, capital formation is endogenous, assuming that firms face capital adjustment costs. Our analysis highlights heterogeneous welfare effects of labor market integration. Whereas individuals without residential property lose from immigration due to increased housing costs, landowners may win. Moreover, we show how the relationship between migration and capital formation depends on initial conditions at the time of labor market integration. Our model is also capable to explain the reversal of migration during the transition to the steady state, like observed in East Germany after unification in 1990. It is also consistent with a gradually rising migration stock and house prices in high-productivity countries like Switzerland.

Download Info

If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
File URL: http://doc.rero.ch/record/31442/files/WP_SES_441.pdf
Download Restriction: no

Bibliographic Info

Paper provided by Faculty of Economics and Social Sciences, University of Freiburg/Fribourg Switzerland in its series FSES Working Papers with number 441.

as in new window
Length: 40
Date of creation: 21 Feb 2013
Date of revision:
Handle: RePEc:fri:fribow:fribow00441

Contact details of provider:
Postal: Bd de Pérolles 90, CH-1700 Fribourg
Phone: +41 26 300 8200
Fax: +41 26 300 9725
Email:
Web page: http://www.unifr.ch/ses/
More information through EDIRC

Order Information:
Email:

Related research

Keywords: Capital formation; House prices; Land distribution; Migration; Welfare;

Other versions of this item:

Find related papers by JEL classification:

This paper has been announced in the following NEP Reports:

References

References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
as in new window
  1. George J. Borjas, 2003. "The Labor Demand Curve is Downward Sloping: Reexamining the Impact of Immigration on the Labor Market," NBER Working Papers 9755, National Bureau of Economic Research, Inc.
  2. Grogger, Jeffrey & Hanson, Gordon H., 2011. "Income maximization and the selection and sorting of international migrants," Journal of Development Economics, Elsevier, Elsevier, vol. 95(1), pages 42-57, May.
  3. Kevin H. O'Rourke & Jeffrey G. Williamson, 2001. "Globalization and History: The Evolution of a Nineteenth-Century Atlantic Economy," MIT Press Books, The MIT Press, The MIT Press, edition 1, volume 1, number 0262650592, December.
  4. Grossmann, Volker & Stadelmann, David, 2010. "Does International Mobility of High-Skilled Workers Aggravate Between-Country Inequality ?," FSES Working Papers, Faculty of Economics and Social Sciences, University of Freiburg/Fribourg Switzerland 416, Faculty of Economics and Social Sciences, University of Freiburg/Fribourg Switzerland.
  5. Felbermayr, Gabriel & Grossmann, Volker & Kohler, Wilhelm, 2012. "Migration, International Trade and Capital Formation: Cause or Effect?," IZA Discussion Papers 6975, Institute for the Study of Labor (IZA).
  6. Grossmann, Volker & Stadelmann, David, 2012. "Wage Effects of High-Skilled Migration: International Evidence," IZA Discussion Papers 6611, Institute for the Study of Labor (IZA).
  7. Christian Nygaard, 2011. "International Migration, Housing Demand and Access to Homeownership in the UK," Urban Studies, Urban Studies Journal Limited, Urban Studies Journal Limited, vol. 48(11), pages 2211-2229, August.
  8. Faini, Riccardo, 1996. "Increasing returns, migrations and convergence," Journal of Development Economics, Elsevier, Elsevier, vol. 49(1), pages 121-136, April.
  9. Saiz, Albert, 2006. "Immigration and Housing Rents in American Cities," IZA Discussion Papers 2189, Institute for the Study of Labor (IZA).
  10. Rappaport, Jordan, 2005. "How does labor mobility affect income convergence?," Journal of Economic Dynamics and Control, Elsevier, Elsevier, vol. 29(3), pages 567-581, March.
  11. Hayashi, Fumio, 1982. "Tobin's Marginal q and Average q: A Neoclassical Interpretation," Econometrica, Econometric Society, Econometric Society, vol. 50(1), pages 213-24, January.
  12. Reichlin, Pietro & Rustichini, Aldo, 1998. "Diverging patterns with endogenous labor migration," Journal of Economic Dynamics and Control, Elsevier, Elsevier, vol. 22(5), pages 703-728, May.
  13. Albert Saiz, 2003. "Room in the Kitchen for the Melting Pot: Immigration and Rental Prices," The Review of Economics and Statistics, MIT Press, vol. 85(3), pages 502-521, August.
Full references (including those not matched with items on IDEAS)

Citations

Lists

This item is not listed on Wikipedia, on a reading list or among the top items on IDEAS.

Statistics

Access and download statistics

Corrections

When requesting a correction, please mention this item's handle: RePEc:fri:fribow:fribow00441. See general information about how to correct material in RePEc.

For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Ivo raemy).

If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

If references are entirely missing, you can add them using this form.

If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.

If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.

Please note that corrections may take a couple of weeks to filter through the various RePEc services.