IDEAS home Printed from https://ideas.repec.org/a/wly/iecrev/v65y2024i4p1747-1776.html
   My bibliography  Save this article

Frictional Sorting: The Impacts Of Dual Constraints On Mobility And Housing Supply In China

Author

Listed:
  • Wenquan Liang
  • Ran Song
  • Christopher Timmins

Abstract

Using an equilibrium sorting model and microdata from China, we evaluate the impacts of dual constraints on mobility and housing supply on workers’ sorting behavior, quantifying the welfare and distributional consequences. Counterfactual simulations show that lowering migration costs associated with institutional restrictions and migrant‐specific amenities would increase welfare and reduce inequality by moving workers from inland to coastal regions in China. These impacts depend on the housing supply elasticity in coastal regions. Similarly, the impacts of relaxing housing supply restrictions depend on mobility constraints. Results highlight the policy complementarities between reducing the two kinds of frictions.

Suggested Citation

  • Wenquan Liang & Ran Song & Christopher Timmins, 2024. "Frictional Sorting: The Impacts Of Dual Constraints On Mobility And Housing Supply In China," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 65(4), pages 1747-1776, November.
    • Handle: RePEc:wly:iecrev:v:65:y:2024:i:4:p:1747-1776
    DOI: 10.1111/iere.12724
    as

    Download full text from publisher

    File URL: https://doi.org/10.1111/iere.12724
    Download Restriction: no
    File URL: https://libkey.io/10.1111/iere.12724?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    More about this item

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:wly:iecrev:v:65:y:2024:i:4:p:1747-1776. See general information about how to correct material in RePEc.

    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.

    We have no bibliographic references for this item. You can help adding them by using 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Wiley Content Delivery (email available below). General contact details of provider: https://edirc.repec.org/data/deupaus.html .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.