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Housing, Mobility and Unemployment

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  • Dohmen, Thomas

    ()
    (University of Bonn)

Abstract

This paper develops a model that shows why high-skilled workers move more and are therefore unemployed less than low-skilled workers. The model can explain the paradoxical empirical regularity that higher owner-occupation rates are associated with higher levels of unemployment although home-owners tend to be unemployed less. The choice of housing tenure affects moving costs and thereby regional mobility and unemployment. The paper analyzes the impact of symmetric and asymmetric shocks on mobility and unemployment, and discusses effects of government intervention in the housing market. In addition, it is shown that moving costs reduce job search effort and search effectiveness.

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File URL: http://ftp.iza.org/dp210.pdf
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Bibliographic Info

Paper provided by Institute for the Study of Labor (IZA) in its series IZA Discussion Papers with number 210.

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Length: 45 pages
Date of creation: Nov 2000
Date of revision:
Publication status: published in: Regional Science and Urban Economics, 2005, 35 (3), 305-325
Handle: RePEc:iza:izadps:dp210

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Keywords: mobility; unemployment; Housing;

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References

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  1. Nickell, Stephen, 1998. "Unemployment: Questions and Some Answers," Economic Journal, Royal Economic Society, vol. 108(448), pages 802-16, May.
  2. Michael A. Shields & Melanie E. Ward, . "Improving Nurse Retention in the British National Health Service: The Impact of Job Satisfaction on Intentions to Quit," Discussion Papers in Public Sector Economics 00/3, Department of Economics, University of Leicester.
  3. Pissarides, Christopher A. & Wadsworth, Jonathan, 1994. "On-the-job search: Some empirical evidence from Britain," European Economic Review, Elsevier, vol. 38(2), pages 385-401, February.
  4. Olivier Blanchard & Lawrence F. Katz, 1996. "What We Know and Do Not Know About the Natural Rate of Unemployment," NBER Working Papers 5822, National Bureau of Economic Research, Inc.
  5. Henley, Andrew, 1998. "Residential Mobility, Housing Equity and the Labour Market," Economic Journal, Royal Economic Society, vol. 108(447), pages 414-27, March.
  6. Christopher A. Pissarides, 2000. "Equilibrium Unemployment Theory, 2nd Edition," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262161877, December.
  7. Layard, Richard & Nickell, Stephen & Jackman, Richard, 2005. "Unemployment: Macroeconomic Performance and the Labour Market," OUP Catalogue, Oxford University Press, number 9780199279173.
  8. Bover, Olympia & Muellbauer, John & Murphy, Anthony, 1988. "Housing, Wages and UK Labour Markets," CEPR Discussion Papers 268, C.E.P.R. Discussion Papers.
  9. Bellmann, Lutz & Schank, Thorsten, 2000. "Innovations, Wages and Demand for Heterogeneous Labour: New Evidence from a Matched Employer-Employee Data-Set," IZA Discussion Papers 112, Institute for the Study of Labor (IZA).
  10. Stephen Nickell, 1997. "Unemployment and Labor Market Rigidities: Europe versus North America," Journal of Economic Perspectives, American Economic Association, vol. 11(3), pages 55-74, Summer.
  11. Evans, Philip & McCormick, Barry, 1994. "The New Pattern of Regional Unemployment: Causes and Policy Significance," Economic Journal, Royal Economic Society, vol. 104(424), pages 633-47, May.
  12. Hughes, Gordon & McCormick, Barry, 1981. "Do Council Housing Policies Reduce Migration between Regions?," Economic Journal, Royal Economic Society, vol. 91(364), pages 919-37, December.
  13. Mark Partridge & Dan Rickman, 1997. "The Dispersion of US State Unemployment Rates: The Role of Market and Non-market Equilibrium Factors," Regional Studies, Taylor & Francis Journals, vol. 31(6), pages 593-606.
  14. McCormick, Barry, 1997. "Regional unemployment and labour mobility in the UK," European Economic Review, Elsevier, vol. 41(3-5), pages 581-589, April.
  15. John Vanderkamp, 1968. "Interregional Mobility in Canada: A Study of the Time Pattern of Migration," Canadian Journal of Economics, Canadian Economics Association, vol. 1(3), pages 595-608, August.
  16. Farber, Henry S., 1999. "Mobility and stability: The dynamics of job change in labor markets," Handbook of Labor Economics, in: O. Ashenfelter & D. Card (ed.), Handbook of Labor Economics, edition 1, volume 3, chapter 37, pages 2439-2483 Elsevier.
  17. Cigno, Alessandro & Rosati, Furio C., 2000. "Why do Indian Children Work, and is it Bad for Them?," IZA Discussion Papers 115, Institute for the Study of Labor (IZA).
  18. Paul Flatau & Matt Forbes & Patric H. Hendershott, 2003. "Homeownership and Unemployment: The Roles of Leverage and Public Housing," NBER Working Papers 10021, National Bureau of Economic Research, Inc.
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Citations

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Cited by:
  1. Di Addario, Sabrina, 2011. "Job search in thick markets," Journal of Urban Economics, Elsevier, vol. 69(3), pages 303-318, May.
  2. Allen Head & Huw Lloyd-Ellis, 2012. "Housing Liquidity, Mobility, and the Labour Market," Review of Economic Studies, Oxford University Press, vol. 79(4), pages 1559-1589.
  3. Blanchflower, David G. & Oswald, Andrew J., 2013. "Does High Home-Ownership Impair the Labor Market?," IZA Discussion Papers 7640, Institute for the Study of Labor (IZA).
  4. Sabrina Di Addario, 2005. "Job Search in Thick Markets: Evidence from Italy," Development Working Papers 198, Centro Studi Luca d\'Agliano, University of Milano.
  5. 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.
  6. Coulson, N. Edward & Fisher, Lynn M., 2009. "Housing tenure and labor market impacts: The search goes on," Journal of Urban Economics, Elsevier, vol. 65(3), pages 252-264, May.
  7. Lui, Hon-Kwong & Suen, Wing, 2011. "The effects of public housing on internal mobility in Hong Kong," Journal of Housing Economics, Elsevier, vol. 20(1), pages 15-29, March.
  8. Rodríguez Hernández, José E. & Barrios García, Javier A., 2012. "¿Incide la forma de tenencia de la vivienda habitual sobre la situación de empleo en España?/Does the Housing Tenure Choice Affect the Employment Situation in Spain?," Estudios de Economía Aplicada, Estudios de Economía Aplicada, vol. 30, pages 751 (22 pag, Agosto.

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