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Housing Tenure and Geographical Mobility in Belgium

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  • D. ISEBAERT

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    Abstract

    Housing tenure is a key determinant of geographical mobility. We estimate several probit models to explain the probability that households move, using Belgian longitudinal PSBH and EU-SILC datasets which together cover the period 1994-2009. We confirm the general conclusion in previous literature, that homeowners are, ceteris paribus, less mobile than tenants. Within the first category, having a mortgage further hampers mobility. Earlier results for Belgium did not find a significant difference between outright owners and mortgagees. Furthermore, we make progress on the existing literature by paying particular attention to (and dealing with) methodological issues such as unobserved heterogeneity and state dependence. However, we also obtain some indications that the strict exogeneity assumption may be violated, implying that we cannot exclude the possibility of some bias in our estimated coefficients.

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    File URL: http://www.feb.ugent.be/nl/Ondz/wp/Papers/wp_13_855.pdf
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    Bibliographic Info

    Paper provided by Ghent University, Faculty of Economics and Business Administration in its series Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium with number 13/855.

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    Length: 26 pages
    Date of creation: Oct 2013
    Date of revision:
    Handle: RePEc:rug:rugwps:13/855

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    Keywords: Housing tenure; geographical mobility; Belgian households; panel data;

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    1. 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.
    2. Mark Andrew, 2004. "A Permanent Change in the Route to Owner Occupation?," Scottish Journal of Political Economy, Scottish Economic Society, vol. 51(1), pages 24-48, 02.
    3. Konstantinos Tatsiramos, 2009. "Geographic labour mobility and unemployment insurance in Europe," Journal of Population Economics, Springer, vol. 22(2), pages 267-283, April.
    4. 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.
    5. Birgitta Rabe & Mark Taylor, 2010. "Residential mobility, quality of neighbourhood and life course events," Journal of the Royal Statistical Society Series A, Royal Statistical Society, vol. 173(3), pages 531-555.
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    7. Chamberlain, Gary, 1980. "Analysis of Covariance with Qualitative Data," Review of Economic Studies, Wiley Blackwell, vol. 47(1), pages 225-38, January.
    8. 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.
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    19. Jeffrey M Wooldridge, 2002. "Simple solutions to the initial conditions problem in dynamic, nonlinear panel data models with unobserved heterogeneity," CeMMAP working papers CWP18/02, Centre for Microdata Methods and Practice, Institute for Fiscal Studies.
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    22. 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.
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    Cited by:
    1. S. Baert & F. Heylen & D. Isebaert, 2013. "Does homeownership lead to longer unemployment spells? The role of mortgage payments," Working Papers of Faculty of Economics and Business Administration, Ghent University, Belgium 13/858, Ghent University, Faculty of Economics and Business Administration.

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