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Housing and Labor Market Vacancies and Beveridge Curves: Theoretical Framework and Illustrative Statistics

Author

Listed:
  • Yannis M. Ioannides
  • Jeffrey E. Zabel

Abstract

The paper presents a model of housing and labor markets in the DMP tradition. The model treats decisions about housing and labor supply as joint decisions of individuals, articulates how the renting and owner segments of housing markets adjust through turnover ows and highlights the transitions across different discrete states in those markets, that is owner-to- owner, owner-to-renter, renter-to-owner, and renter-to-renter by unemployed or employed workers. It allows for vacancy rates in the rental and owner segments of the housing market, and introduces a novel concept of "unemployment" in housing markets thus allowing for the definition of Beveridge curves for housing markets. The paper documents the empirical significance of these concepts by means of data from the Panel Study of Income Dynamics for 1969-2015.

Suggested Citation

  • Yannis M. Ioannides & Jeffrey E. Zabel, 2018. "Housing and Labor Market Vacancies and Beveridge Curves: Theoretical Framework and Illustrative Statistics," Discussion Papers Series, Department of Economics, Tufts University 0828, Department of Economics, Tufts University.
    • Handle: RePEc:tuf:tuftec:0828
    as

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    File URL: https://sites.tufts.edu/yioannides/files/2018/03/Ioannides-Zabel-EE-Vol-March-25-2018.pdf
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    References listed on IDEAS

    as
    1. Arnott, Richard, 1989. "Housing Vacancies, Thin Markets, and Idiosyncratic Tastes," The Journal of Real Estate Finance and Economics, Springer, vol. 2(1), pages 5-30, February.
    2. Brian Peterson, 2009. "The Beveridge Curve in the Housing Market: Supply and Disequilibrium," Caepr Working Papers 2009-009, Center for Applied Economics and Policy Research, Economics Department, Indiana University Bloomington.
    3. Miroslav Gabrovski & Victor Ortego-Marti, 2018. "Housing Market Dynamics with Search Frictions," Working Papers 201804, University of California at Riverside, Department of Economics.
    4. Rupert, Peter & Wasmer, Etienne, 2012. "Housing and the labor market: Time to move and aggregate unemployment," Journal of Monetary Economics, Elsevier, vol. 59(1), pages 24-36.
    5. James M. Poterba, 1984. "Tax Subsidies to Owner-Occupied Housing: An Asset-Market Approach," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 99(4), pages 729-752.
    6. Ioannides, Yannis M., 1975. "Market allocation through search: Equilibrium adjustment and price dispersion," Journal of Economic Theory, Elsevier, vol. 11(2), pages 247-262, October.
    7. Beugnot, Julie & Lacroix, Guy & Charlot, Olivier, 2014. "Homeownership and Labour Market Outcomes: Micro versus Macro Performances," IZA Discussion Papers 8599, Institute of Labor Economics (IZA).
    8. Christopher A. Pissarides, 2011. "Equilibrium in the Labor Market with Search Frictions," American Economic Review, American Economic Association, vol. 101(4), pages 1092-1105, June.
    9. Coulson, N. Edward & Fisher, Lynn M., 2009. "Housing tenure and labor market impacts: The search goes on," Journal of Urban Economics, Elsevier, vol. 65(3), pages 252-264, May.
    10. Petrosky-Nadeau, Nicolas & Wasmer, Etienne, 2017. "Labor, Credit, and Goods Markets: The Macroeconomics of Search and Unemployment," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262036452, December.
    11. Rüdiger Bachmann & Daniel H. Cooper, 2014. "The ins and arounds in the U.S. housing market," Working Papers 14-3, Federal Reserve Bank of Boston.
    12. Brian Peterson, 2009. "The Beveridge Curve in the Housing Market: Supply and Disequilibrium," CAEPR Working Papers 2009-009, Center for Applied Economics and Policy Research, Department of Economics, Indiana University Bloomington.
    13. Allen Head & Huw Lloyd-Ellis, 2012. "Housing Liquidity, Mobility, and the Labour Market," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 79(4), pages 1559-1589.
    14. Christopher A. Pissarides, 2000. "Equilibrium Unemployment Theory, 2nd Edition," MIT Press Books, The MIT Press, edition 1, volume 1, number 0262161877, December.
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    16. Wheaton, William C, 1990. "Vacancy, Search, and Prices in a Housing Market Matching Model," Journal of Political Economy, University of Chicago Press, vol. 98(6), pages 1270-1292, December.
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    Full references (including those not matched with items on IDEAS)

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    More about this item

    Keywords

    Housing Vacancies; Job Openings; Beveridge Curves; Housing and labor markets.;
    All these keywords.

    JEL classification:

    • R23 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Household Analysis - - - Regional Migration; Regional Labor Markets; Population
    • J64 - Labor and Demographic Economics - - Mobility, Unemployment, Vacancies, and Immigrant Workers - - - Unemployment: Models, Duration, Incidence, and Job Search

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