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Residential Mobility and Social Capital

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Abstract

This paper empirically investigates the role of social capital in households’residential mobility behavior by considering its spatial dimension. This study focuses on a household’s social ties with people living nearby, which we refer to as its “local social capital”. Local social capital may deter residential mobility, because the resources stemming from them are location-specific and will be less valuable if a household moves. We conjecture that a household’s possession of local social capital has a negative effect on its residential mobility, and this negative effect of local social capital may be stronger on long-distance mobility than on short-distance mobility. Our empirical investigation is based on data from the Panel Study of Income Dynamics. We obtain evidence which is supportive of these conjectures.

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Paper provided by Institute of Economics, Academia Sinica, Taipei, Taiwan in its series IEAS Working Paper : academic research with number 06-A005.

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Length: 34 pages
Date of creation: Jul 2006
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Handle: RePEc:sin:wpaper:06-a005

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