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Housing Market Dynamics and Regional Migration in Britain

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  • John Muellbauer
  • Anthony Murphy
  • John Muellbauer

Abstract

Economic conditions exert a strong influence on regional migration. On the one hand, strong labour market conditions, as exemplified by low unemployment rates and high earnings, draw migrants into regions. On the other hand, strong housing market conditions can prevent movement since expensive housing can deter migrants and commuting may often be an alternative. This can be thought of as giving rise to a migration equilibrium, where high house prices choke off migration caused by strong labour market conditions. Expected capital gains in housing and expected earnings growth however, can offset high levels of house prices, effects ignored in previous literature. Migration can also be influenced more directly by the availability of housing relative to population without this being mediated through prices. This paper presents evidence from a 28 year panel on net and gross migration for the regions of Britain that is broadly in accord with these expectations.

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Bibliographic Info

Paper provided by University of Oxford, Department of Economics in its series Economics Series Working Papers with number 275.

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Date of creation: 01 Aug 2006
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Handle: RePEc:oxf:wpaper:275

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Keywords: Regional Migration; House Prices; Expected Capital Gains; Contiguity; Great Britain; Regional Panel;

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Citations

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Cited by:
  1. Ioannis Kaplanis & Vassilis Monastiriotis, 2012. "Flexible Employment and Cross-Regional Adjustment," SERC Discussion Papers 0100, Spatial Economics Research Centre, LSE.
  2. Helmut Rainer & Ian Smith, 2008. "Staying Together for the Sake of the Home? House Price Shocks and Partnership Dissolution in the UK," Discussion Paper Series, Department of Economics 200809, Department of Economics, University of St. Andrews.
  3. Henry Overman & Patricia Rice & Anthony J. Venables, 2007. "Economic Linkages Across Space," CEP Discussion Papers dp0805, Centre for Economic Performance, LSE.
  4. Birgitta Rabe & Mark P. Taylor, 2012. "Differences in Opportunities? Wage, Employment and House-Price Effects on Migration," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 74(6), pages 831-855, December.
  5. Fredrik Carlsen & Kare Johansen & Lasse Sigbjorn Stambol, 2011. "Effects of Regional Labour Markets on Migration Flows, by Education Level," ERSA conference papers ersa10p693, European Regional Science Association.
  6. Birgitta Rabe, 2011. "Dual-earner migration. Earnings gains, employment and self-selection," Journal of Population Economics, Springer, vol. 24(2), pages 477-497, April.
  7. Vermeulen, Wouter & van Ommeren, Jos, 2009. "Does land use planning shape regional economies? A simultaneous analysis of housing supply, internal migration and local employment growth in the Netherlands," Journal of Housing Economics, Elsevier, vol. 18(4), pages 294-310, December.

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