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Housing Tenure and Geographical Mobility in Belgium

  • D. ISEBAERT

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    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://wps-feb.ugent.be/Papers/wp_13_855.pdf
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    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
    Contact details of provider: Postal: Hoveniersberg 4, B-9000 Gent
    Phone: ++ 32 (0) 9 264 34 61
    Fax: ++ 32 (0) 9 264 35 92
    Web page: http://www.ugent.be/eb

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    1. repec:ese:iserwp:2010-05 is not listed on IDEAS
    2. Martin Biewen, 2009. "Measuring state dependence in individual poverty histories when there is feedback to employment status and household composition," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 24(7), pages 1095-1116.
    3. Viola Angelini & Anne Laferrère, 2012. "Residential Mobility of the European Elderly," CESifo Economic Studies, CESifo, vol. 58(3), pages 544-569, September.
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    7. Schwartz, Aba, 1973. "Interpreting the Effect of Distance on Migration," Journal of Political Economy, University of Chicago Press, vol. 81(5), pages 1153-69, Sept.-Oct.
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    9. Hughes, Gordon & McCormick, Barry & McCormick, Barry, 1987. "Housing markets, unemployment and labour market flexibility in the UK," European Economic Review, Elsevier, vol. 31(3), pages 615-641, April.
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    11. Mark P. Taylor, 2007. "Tied Migration and Subsequent Employment: Evidence from Couples in Britain," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 69(6), pages 795-818, December.
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    16. 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.
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    18. 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.
    19. Ermisch, John & Di Salvo, Pamela, 1996. "Surprises and Housing Tenure Decisions in Great Britain," Journal of Housing Economics, Elsevier, vol. 5(3), pages 247-273, September.
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    21. Pietro Catte & Nathalie Girouard & Robert Price & Christophe André, 2004. "The Contribution of Housing Markets to Cyclical Resilience," OECD Economic Studies, OECD Publishing, vol. 2004(1), pages 125-156.
    22. Chamberlain, Gary, 1980. "Analysis of Covariance with Qualitative Data," Review of Economic Studies, Wiley Blackwell, vol. 47(1), pages 225-38, January.
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