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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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    Citations

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    Cited by:

    1. Valletta, Robert G., 2013. "House lock and structural unemployment," Labour Economics, Elsevier, vol. 25(C), pages 86-97.
    2. Fatih Karahan & Serena Rhee, 2014. "Population aging, migration spillovers, and the decline in interstate migration," Staff Reports 699, Federal Reserve Bank of New York.
    3. Fernando Ferreira & Joseph Gyourko & Joseph Tracy, 2012. "Housing busts and household mobility: an update," Economic Policy Review, Federal Reserve Bank of New York, vol. 18(Nov), pages 1-15.
    4. Derek Messacar, 2022. "Community attachment, job loss and regional labour mobility in Canada: Evidence from the Great Recession," Canadian Journal of Economics/Revue canadienne d'économique, John Wiley & Sons, vol. 55(3), pages 1404-1430, August.
    5. Karahan, Fatih & Rhee, Serena, 2019. "Geographic reallocation and unemployment during the Great Recession: The role of the housing bust," Journal of Economic Dynamics and Control, Elsevier, vol. 100(C), pages 47-69.
    6. 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.
    7. Brown, Jennifer & Matsa, David A., 2020. "Locked in by leverage: Job search during the housing crisis," Journal of Financial Economics, Elsevier, vol. 136(3), pages 623-648.
    8. Alice Henriques Volz, 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.).
    9. 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.
    10. Hugo Erken & Eric van Loon & Wouter Verbeek, 2015. "Mismatch on the Dutch labour market in the Great Recession," CPB Discussion Paper 303.rdf, CPB Netherlands Bureau for Economic Policy Analysis.
    11. 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, vol. 102(3), pages 520-525, May.
    12. Sam Schulhofer-Wohl, 2012. "Negative equity does not reduce homeowners’ mobility," Quarterly Review, Federal Reserve Bank of Minneapolis, issue Feb, pages 1-17.
    13. Jesse Bricker & Brian Bucks, 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.).
    14. 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.
    15. 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.
    16. 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.
    17. 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, vol. 20(3), pages 325-337, August.
    18. Jun Nie & Ethan Struby, 2011. "Would active labor market policies help combat high U.S. unemployment?," Economic Review, Federal Reserve Bank of Kansas City, vol. 96(Q III), pages 35-69.

    More about this item

    Keywords

    Unemployment; Labor policy;

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