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Migration, housing and regional disparities: A gravity model of inter-regional migration with an application to selected OECD countries

Author

Listed:
  • Maria Chiara Cavalleri
  • Nhung Luu
  • Orsetta Causa

Abstract

Inter-regional migration – the movements of the population from one region to another within the same country – can be an important mechanism of spatial economic adjustment, affecting regional demographic and growth patterns. This paper examines the economic and housing-related factors that affect the decision of people to migrate to another region within the same country, drawing empirical evidence from country-specific gravity models of inter-regional migration for 14 OECD countries. The results suggest that inter-regional migrants move in search of higher income and better employment opportunities, but are discouraged by high housing costs. In particular, house prices are found to be an important barrier to migration, especially in countries having experienced strong increases in the level and cross-regional dispersion of house prices. There is however large heterogeneity across countries in terms of what factors matter the most and in terms of the magnitude of the migration response.

Suggested Citation

  • Maria Chiara Cavalleri & Nhung Luu & Orsetta Causa, 2021. "Migration, housing and regional disparities: A gravity model of inter-regional migration with an application to selected OECD countries," OECD Economics Department Working Papers 1691, OECD Publishing.
    • Handle: RePEc:oec:ecoaaa:1691-en
    DOI: 10.1787/421bf4aa-en
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    Cited by:

    1. Anna Stansbury & Dan Turner & Ed Balls, 2023. "Tackling the UK’s regional economic inequality: binding constraints and avenues for policy intervention," Contemporary Social Science, Taylor & Francis Journals, vol. 18(3-4), pages 318-356, August.

    More about this item

    Keywords

    house prices; housing; inter-regional migration; internal migration; local labour markets; regional disparities; regional mobility;
    All these keywords.

    JEL classification:

    • R12 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Size and Spatial Distributions of Regional Economic Activity; Interregional Trade (economic geography)
    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • R31 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location - - - Housing Supply and Markets
    • J61 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Geographic Labor Mobility; Immigrant Workers

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