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

Housing Market Dynamics and Regional Migration in Britain

Contents:

Author Info

  • 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.

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://www.economics.ox.ac.uk/materials/working_papers/paper275.pdf
Download Restriction: no

Bibliographic Info

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

as in new window
Length:
Date of creation: 01 Aug 2006
Date of revision:
Handle: RePEc:oxf:wpaper:275

Contact details of provider:
Postal: Manor Rd. Building, Oxford, OX1 3UQ
Email:
Web page: http://www.economics.ox.ac.uk/
More information through EDIRC

Related research

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

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. Stuart A. Gabriel & Janice Shack-Marquez & William L. Wascher, 1991. "Regional house-price dispersion and interregional migration," Working Paper Series / Economic Activity Section, Board of Governors of the Federal Reserve System (U.S.) 122, Board of Governors of the Federal Reserve System (U.S.).
  2. Jos van Ommeren & Michiel van Leuvensteijn, 2002. "New Evidence of the Effect of Transaction Costs on Residential Mobility," Tinbergen Institute Discussion Papers 02-117/3, Tinbergen Institute.
  3. John Stillwell, 2005. "Inter-regional migration modelling - a review and assessment," ERSA conference papers ersa05p770, European Regional Science Association.
  4. Cameron, Gavin & Muellbauer, John & Murphy, Anthony, 2006. "Was There A British House Price Bubble? Evidence From A Regional Panel," ERES, European Real Estate Society (ERES) eres2006_150, European Real Estate Society (ERES).
  5. Hughes, Gordon & McCormick, Barry & McCormick, Barry, 1987. "Housing markets, unemployment and labour market flexibility in the UK," European Economic Review, Elsevier, Elsevier, vol. 31(3), pages 615-641, April.
  6. McCormick, Barry, 1997. "Regional unemployment and labour mobility in the UK," European Economic Review, Elsevier, Elsevier, vol. 41(3-5), pages 581-589, April.
  7. Kent Eliasson & Urban Lindgren & Olle Westerlund, 2003. "Geographical Labour Mobility: Migration or Commuting?," Regional Studies, Taylor & Francis Journals, Taylor & Francis Journals, vol. 37(8), pages 827-837.
  8. Muellbauer, John & Murphy, Anthony, 1997. "Booms and Busts in the UK Housing Market," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 107(445), pages 1701-27, November.
  9. Small, Kenneth A, 1987. "A Discrete Choice Model for Ordered Alternatives," Econometrica, Econometric Society, Econometric Society, vol. 55(2), pages 409-24, March.
  10. Hatton, Timothy J & Massimiliano Tani, 2003. "Immigration and Inter-Regional Mobility in the UK, 1982-2000," Royal Economic Society Annual Conference 2003, Royal Economic Society 101, Royal Economic Society.
  11. Gordon, Ian R, 1975. "Employment and Housing Streams in British Inter-Regional Migration," Scottish Journal of Political Economy, Scottish Economic Society, vol. 22(2), pages 161-77, June.
  12. Howard J. Wall, 1996. "Voting With Your Feet in the United Kingdom," Archive Discussion Papers, Birkbeck, Department of Economics, Mathematics & Statistics 9617, Birkbeck, Department of Economics, Mathematics & Statistics.
  13. Bover, Olympia & Muellbauer, John & Murphy, Anthony, 1989. "Housing, Wages and UK Labour Markets," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 51(2), pages 97-136, March.
  14. Greenwood, Michael J, 1975. "Research on Internal Migration in the United States: A Survey," Journal of Economic Literature, American Economic Association, vol. 13(2), pages 397-433, June.
  15. G Johnes & T. Hyclak, . "House Prices, Migration and Regional Labour Markets," Working Papers, Department of Economics, University of Lancaster ec9/91, Department of Economics, University of Lancaster.
  16. 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.
  17. Paul Gregg & Stephen Machin & Alan Manning, 2004. "Mobility and Joblessness," NBER Chapters, in: Seeking a Premier Economy: The Economic Effects of British Economic Reforms, 1980-2000, pages 371-410 National Bureau of Economic Research, Inc.
  18. Cameron, Gavin & Muellbauer, John, 2000. "Earnings Biases in the United Kingdom Regional Accounts: Some Economic Policy and Research Implications," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 110(464), pages F412-29, June.
  19. Henley, Andrew, 1998. "Residential Mobility, Housing Equity and the Labour Market," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 108(447), pages 414-27, March.
  20. Jackman, Richard & Savouri, Savvas, 1992. "Regional Migration versus Regional Commuting: The Identification of Housing and Employment Flows," Scottish Journal of Political Economy, Scottish Economic Society, vol. 39(3), pages 272-87, August.
  21. A Stewart Fotheringham & Phil Rees & Tony Champion & Stamatis Kalogirou & Andy R Tremayne, 2004. "The development of a migration model for England and Wales: overview and modelling out-migration," Environment and Planning A, Pion Ltd, London, vol. 36(9), pages 1633-1672, September.
  22. Gordon Hughes & Barry McCormick, 1991. "Housing Markets, Unemployment and Labour Market Flexibility in the U.K," NBER Chapters, in: International Volatility and Economic Growth: The First Ten Years of The International Seminar on Macroeconomics, pages 83-114 National Bureau of Economic Research, Inc.
  23. Molho, I, 1982. "Contiguity and Inter-Regional Migration Flows in Great Britain," Scottish Journal of Political Economy, Scottish Economic Society, vol. 29(3), pages 283-97, November.
  24. Antolin, Pablo & Bover, Olympia, 1997. "Regional Migration in Spain: The Effect of Personal Characteristics and of Unemployment, Wage and House Price Differentials Using Pooled Cross-Sections," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 59(2), pages 215-35, May.
  25. Richard Jackman & S Savouri, 1992. "Regional Migration versus Regional Commuting: The Identification of Housing and Employment Flows," CEP Discussion Papers dp0057, Centre for Economic Performance, LSE.
  26. Train,Kenneth E., 2009. "Discrete Choice Methods with Simulation," Cambridge Books, Cambridge University Press, Cambridge University Press, number 9780521766555.
  27. Greenwood, Michael J, 1969. "An Analysis of the Determinants of Geographic Labor Mobility in the United States," The Review of Economics and Statistics, MIT Press, vol. 51(2), pages 189-94, May.
  28. Jackman, Richard & Savouri, Savvas, 1992. "Regional Migration in Britain: An Analysis of Gross Flows Using NHS Central Register Data," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 102(415), pages 1433-50, November.
  29. Pissarides, Christopher A & Wadsworth, Jonathan, 1989. "Unemployment and the Inter-regional Mobility of Labour," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 99(397), pages 739-55, September.
  30. Boheim, Rene & Taylor, Mark P, 2002. "Tied Down or Rome to Move? Investigating the Relationships between Housing Tenure, Employment Status and Residential Mobility in Britain," Scottish Journal of Political Economy, Scottish Economic Society, vol. 49(4), pages 369-92, September.
  31. Hughes, Gordon & McCormick, Barry, 1981. "Do Council Housing Policies Reduce Migration between Regions?," Economic Journal, Royal Economic Society, Royal Economic Society, vol. 91(364), pages 919-37, December.
  32. Kiel, Katherine A., 1994. "The Impact of House Price Appreciation on Household Mobility," Journal of Housing Economics, Elsevier, Elsevier, vol. 3(2), pages 92-108, June.
  33. Pissarides, Christopher A & McMaster, Ian, 1990. "Regional Migration, Wages and Unemployment: Empirical Evidence and Implications for Policy," Oxford Economic Papers, Oxford University Press, vol. 42(4), pages 812-31, October.
Full references (including those not matched with items on IDEAS)

Citations

Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
as in new window

Cited by:
  1. Monastiriotis, Vassilis & Kaplanis, Ioannis, 2011. "Flexible employment and cross- regional adjustment," Working Papers 2072/179671, Universitat Rovira i Virgili, Department of Economics.
  2. Birgitta Rabe, 2011. "Dual-earner migration. Earnings gains, employment and self-selection," Journal of Population Economics, Springer, Springer, vol. 24(2), pages 477-497, April.
  3. Henry G. Overman & Patricia Rice & Anthony J. Venables, 2010. "Economic linkages across space," LSE Research Online Documents on Economics, London School of Economics and Political Science, LSE Library 30779, London School of Economics and Political Science, LSE Library.
  4. 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, Elsevier, vol. 18(4), pages 294-310, December.
  5. 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, Department of Economics, University of St. Andrews 200809, Department of Economics, University of St. Andrews.
  6. 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.
  7. repec:ese:iserwp:2010-05 is not listed on IDEAS
  8. 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.

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:oxf:wpaper:275. 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: (Caroline Wise).

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.