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How much has house lock affected labor mobility and the unemployment rate?

Author

Listed:
  • Daniel Aaronson
  • Jonathan Davis

Abstract

This article explores new evidence from the U.S. Census Bureau’s Survey of Income and Program Participation (SIPP) on the extent to which “house lock”--the reluctance of households to sell their homes in a declining house price environment--has contributed to the elevated unemployment rate since 2008.

Suggested Citation

  • Daniel Aaronson & Jonathan Davis, 2011. "How much has house lock affected labor mobility and the unemployment rate?," Chicago Fed Letter, Federal Reserve Bank of Chicago, issue Sep.
  • Handle: RePEc:fip:fedhle:y:2011:i:sep:n:290
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    File URL: http://www.chicagofed.org/digital_assets/publications/chicago_fed_letter/2011/cflseptember2011_290.pdf
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Serena Rhee & Fatih Karahan, 2015. "Population Aging, Migration Spillovers and the Decline in Interstate Migration," 2015 Meeting Papers 1177, Society for Economic Dynamics.
    2. Bricker, Jesse & Bucks, Brian, 2016. "Negative home equity, economic insecurity, and household mobility over the Great Recession," Journal of Urban Economics, Elsevier, vol. 91(C), pages 1-12.
    3. Jennifer Brown & David A. Matsa, 2016. "Locked in by Leverage: Job Search during the Housing Crisis," NBER Working Papers 22929, National Bureau of Economic Research, Inc.
    4. Alice M. Henriques, 2013. "Are homeowners in denial about their house values? comparing owner perceptions with transaction-based indexes," Finance and Economics Discussion Series 2013-79, Board of Governors of the Federal Reserve System (U.S.).
    5. Siddharth Kothari & Itay Saporta Eksten & Edison Yu, 2013. "The (Un)importance of Geographical Mobility in the Great Recession"," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 16(3), pages 553-563, July.
    6. Bart Hobijn & Aysegul Sahin, 2013. "Beveridge Curve Shifts across Countries since the Great Recession," IMF Economic Review, Palgrave Macmillan;International Monetary Fund, vol. 61(4), pages 566-600, December.
    7. Brian K. Bucks & Jesse Bricker, 2013. "Household mobility over the Great Recession: evidence from the U.S. 2007-09 Survey of Consumer Finances panel," Finance and Economics Discussion Series 2013-53, Board of Governors of the Federal Reserve System (U.S.).
    8. Gita Gopinath & Brent Neiman, 2014. "Trade Adjustment and Productivity in Large Crises," American Economic Review, American Economic Association, pages 793-831.
    9. Modestino, Alicia Sasser & Dennett, Julia, 2013. "Are American homeowners locked into their houses? The impact of housing market conditions on state-to-state migration," Regional Science and Urban Economics, Elsevier, vol. 43(2), pages 322-337.
    10. Christopher F. Goetz, 2013. "Falling House Prices And Labor Mobility: Evidence From Matched Employer-Employee Data," Working Papers 13-43, Center for Economic Studies, U.S. Census Bureau.
    11. Valletta, Robert G., 2013. "House lock and structural unemployment," Labour Economics, Elsevier, vol. 25(C), pages 86-97.
    12. Fernando Ferreira & Joseph Gyourko & Joseph Tracy, 2012. "Housing busts and household mobility: an update," Economic Policy Review, Federal Reserve Bank of New York, issue Nov, pages 1-15.
    13. Jun Nie & Ethan Struby, 2011. "Would active labor market policies help combat high U.S. unemployment?," Economic Review, Federal Reserve Bank of Kansas City, issue Q III, pages 35-69.
    14. Henry S. Farber, 2012. "Unemployment in the Great Recession: Did the Housing Market Crisis Prevent the Unemployed from Moving to Take Jobs?," American Economic Review, American Economic Association, pages 520-525.
    15. Schulhofer-Wohl, Sam, 2012. "Negative equity does not reduce homeowners’ mobility," Quarterly Review, Federal Reserve Bank of Minneapolis, pages 1-17.
    16. repec:kap:iaecre:v:20:y:2014:i:3:p:325-337 is not listed on IDEAS
    17. Hugo Erken & Eric van Loon & Wouter Verbeek, 2015. "Mismatch on the Dutch labour market in the Great Recession," CPB Discussion Paper 303, CPB Netherlands Bureau for Economic Policy Analysis.
    18. Schulhofer-Wohl, Sam, 2012. "Negative equity does not reduce homeowners’ mobility," Quarterly Review, Federal Reserve Bank of Minneapolis, pages 1-17.
    19. Louis Pantuosco & Laura Ullrich, 2014. "Factors of Immobility: Why the Unemployment Rate is Slow to Adjust," International Advances in Economic Research, Springer;International Atlantic Economic Society, pages 325-337.
    20. Karahan, Fatih & Rhee, Serena, 2014. "Population aging, migration spillovers, and the decline in interstate migration," Staff Reports 699, Federal Reserve Bank of New York, revised 01 Apr 2017.

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    Keywords

    Labor policy ; Unemployment;

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