IDEAS home Printed from https://ideas.repec.org/p/hal/spmain/hal-03799479.html
   My bibliography  Save this paper

The Effect of Homeownership on the Option Value of Regional Migration

Author

Listed:
  • Florian Oswald

    (ECON - Département d'économie (Sciences Po) - Sciences Po - Sciences Po - CNRS - Centre National de la Recherche Scientifique)

Abstract

This paper estimates a lifecycle model of consumption, housing choice, and migration in the presence of aggregate and regional shocks, using the Survey of Income and Program Participation (SIPP). The model delivers structural estimates of moving costs by ownership status, age, and family size that complement the previous literature. Using the model, I first show that migration elasticities vary substantially between renters and owners, and I estimate the consumption value of having the option to migrate across regions when there are regional shocks. This value is 19 % of lifetime consumption on average, and it varies substantially with household type.

Suggested Citation

  • Florian Oswald, 2019. "The Effect of Homeownership on the Option Value of Regional Migration," SciencePo Working papers Main hal-03799479, HAL.
    • Handle: RePEc:hal:spmain:hal-03799479
    DOI: 10.3982/QE872
    Note: View the original document on HAL open archive server: https://sciencespo.hal.science/hal-03799479
    as

    Download full text from publisher

    File URL: https://sciencespo.hal.science/hal-03799479/document
    Download Restriction: no
    File URL: https://libkey.io/10.3982/QE872?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
    ---><---

    Other versions of this item:

    References listed on IDEAS

    as
    1. David Card, 2012. "Comment: The Elusive Search For Negative Wage Impacts Of Immigration," Journal of the European Economic Association, European Economic Association, vol. 10(1), pages 211-215, February.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Benoit Schmutz & Modibo Sidibé & Elie Vidal-Naquet, 2021. "Why Are Low-Skilled Workers Less Mobile? The Role of Mobility Costs and Spatial Frictions," Annals of Economics and Statistics, GENES, issue 142, pages 283-304.
    2. Koşar, Gizem & Ransom, Tyler & van der Klaauw, Wilbert, 2022. "Understanding migration aversion using elicited counterfactual choice probabilities," Journal of Econometrics, Elsevier, vol. 231(1), pages 123-147.
    3. Thomas H. Jørgensen, 2023. "Sensitivity to Calibrated Parameters," The Review of Economics and Statistics, MIT Press, vol. 105(2), pages 474-481, March.
    4. Mense, Andreas, 2021. "Secondary housing supply," FAU Discussion Papers in Economics 05/2021, Friedrich-Alexander University Erlangen-Nuremberg, Institute for Economics.
    5. Howard, Greg & Liebersohn, Jack, 2021. "Why is the rent so darn high? The role of growing demand to live in housing-supply-inelastic cities," Journal of Urban Economics, Elsevier, vol. 124(C).
    6. Bontemps, Christian & Cherbonnier, Frédéric & Magnac, Thierry, 2023. "Reducing transaction taxes on housing in highly regulated economies”," TSE Working Papers 23-1486, Toulouse School of Economics (TSE).
    7. Joseph-Simon Görlach, 2023. "Borrowing Constraints and the Dynamics of Return and Repeat Migration," Journal of Labor Economics, University of Chicago Press, vol. 41(1), pages 205-243.
    8. Jonathan Halket & Lars Nesheim & Florian Oswald, 2020. "The Housing Stock, Housing Prices, And User Costs: The Roles Of Location, Structure, And Unobserved Quality," International Economic Review, Department of Economics, University of Pennsylvania and Osaka University Institute of Social and Economic Research Association, vol. 61(4), pages 1777-1814, November.
    9. Lee, Kiryoung & Jeon, Yoontae & Jo, Chanik, 2020. "Chinese economic policy uncertainty and U.S. households' portfolio decisions," Pacific-Basin Finance Journal, Elsevier, vol. 64(C).
    10. Dirección General de Economía y Estadística, 2020. "El mercado de la vivienda en España entre 2014 y 2019," Occasional Papers 2013, Banco de España.
    11. Jérôme Adda & Christian Dustmann & Joseph-Simon Görlach, 2022. "The Dynamics of Return Migration, Human Capital Accumulation, and Wage Assimilation," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 89(6), pages 2841-2871.
    12. Tyler Ransom, 2022. "Labor Market Frictions and Moving Costs of the Employed and Unemployed," Journal of Human Resources, University of Wisconsin Press, vol. 57(S), pages 137-166.
    13. Botsch, Matthew J. & Morris, Stephen D., 2021. "Job loss risk, expected mobility, and home ownership," Journal of Housing Economics, Elsevier, vol. 53(C).
    14. Mikhail Golosov & Michael Graber & Magne Mogstad & David Novgorodsky, 2024. "How Americans Respond to Idiosyncratic and Exogenous Changes in Household Wealth and Unearned Income," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 139(2), pages 1321-1395.
    15. Broulíková, Hana M. & Huber, Peter & Montag, Josef & Sunega, Petr, 2020. "Homeownership, mobility, and unemployment: Evidence from housing privatization," Journal of Housing Economics, Elsevier, vol. 50(C).
    16. Sandra Krapf & Clara H. Mulder & Michael Wagner, 2022. "The Transition to a Coresidential Partnership: Who Moves and Who Has the Partner Move In?," Population Research and Policy Review, Springer;Southern Demographic Association (SDA), vol. 41(2), pages 757-779, April.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Aubry, Amandine & Héricourt, Jérôme & Marchal, Léa & Nedoncelle, Clément, 2022. "Does Immigration AffectWages? A Meta-Analysis," CEPREMAP Working Papers (Docweb) 2202, CEPREMAP.
    2. Ajzenman, Nicolás & Aksoy, Cevat Giray & Guriev, Sergei, 2022. "Exposure to transit migration: Public attitudes and entrepreneurship," Journal of Development Economics, Elsevier, vol. 158(C).
    3. Ariu, Andrea & Müller, Tobias & Nguyen, Tuan, 2023. "Immigration and the Slope of the Labor Demand Curve: The Role of Firm Heterogeneity in a Model of Regional Labor Markets," CEPR Discussion Papers 18091, C.E.P.R. Discussion Papers.
    4. Doyle, Matthew & Skuterud, Mikal & Worswick, Christopher, 2023. "The economics of Canadian immigration levels," CLEF Working Paper Series 58, Canadian Labour Economics Forum (CLEF), University of Waterloo.
    5. Ray Chaudhuri, A. & Pandey, Manish, 2015. "Immigration, Endogenous Technology Adoption and Wages," Discussion Paper 2015-008, Tilburg University, Center for Economic Research.
    6. David Roodman, 2020. "The domestic economic impacts of immigration," Papers 2007.10269, arXiv.org.
    7. Frédéric Docquier & Riccardo Turati & Jérôme Valette & Chrysovalantis Vasilakis, 2020. "Birthplace diversity and economic growth: evidence from the US states in the Post-World War II period [Cultural diversity and economic growth: evidence from the US during the age of mass migration]," Journal of Economic Geography, Oxford University Press, vol. 20(2), pages 321-354.
    8. Hausmann, Ricardo & Nedelkoska, Ljubica, 2017. "Welcome Home in a Crisis: Effects of Return Migration on the Non-Migrants’ Wages and Employment," Working Paper Series rwp17-015, Harvard University, John F. Kennedy School of Government.
    9. Gehrsitz, Markus & Ungerer, Martin, 2017. "Jobs, Crime, and Votes: A Short-run Evaluation of the Refugee Crisis in Germany," IZA Discussion Papers 10494, Institute of Labor Economics (IZA).
    10. Francisco Perez‐Arce & María J. Prados, 2021. "The Decline In The U.S. Labor Force Participation Rate: A Literature Review," Journal of Economic Surveys, Wiley Blackwell, vol. 35(2), pages 615-652, April.
    11. Philipp Ager & Casper Worm Hansen, 2016. "National Immigration Quotas and Local Economic Growth," Discussion Papers 16-11, University of Copenhagen. Department of Economics.
    12. Ortega, J. & Verdugo, G., 2015. "The Impact of Immigration on the Local Labor Market Outcomes of Blue Collar Workers: Panel Data Evidence," Working Papers 15/07, Department of Economics, City University London.
    13. Amaral, Ernesto F. L. & Woldetsadik, Mahlet A. & Armenta, Gabriela, 2018. "Challenges to the integration of Syrian refugees," OSF Preprints 2zvmu, Center for Open Science.
    14. Hausmann, Ricardo & Nedelkoska, Ljubica, 2018. "Welcome home in a crisis: Effects of return migration on the non-migrants' wages and employment," European Economic Review, Elsevier, vol. 101(C), pages 101-132.
    15. Emily Gu & Chad Sparber, 2017. "The Native-Born Occupational Skill Response to Immigration within Education and Experience Cells," Eastern Economic Journal, Palgrave Macmillan;Eastern Economic Association, vol. 43(3), pages 426-450, June.
    16. Fabling, Richard & Maré, David C. & Stevens, Philip, 2022. "Migration and Firm-Level Productivity," IZA Discussion Papers 15482, Institute of Labor Economics (IZA).
    17. Gray, Rowena & Montresor, Giulia & Wright, Greg C., 2020. "Processing immigration shocks: Firm responses on the innovation margin," Journal of International Economics, Elsevier, vol. 126(C).
    18. Tito Boeri & Jan van Ours, 2013. "The Economics of Imperfect Labor Markets: Second Edition," Economics Books, Princeton University Press, edition 1, number 10142.
    19. Semih Tumen, 2015. "The use of natural experiments in migration research," IZA World of Labor, Institute of Labor Economics (IZA), pages 191-191, October.
    20. Sandra Sequeira & Nathan Nunn & Nancy Qian, 2020. "Immigrants and the Making of America," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 87(1), pages 382-419.

    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:hal:spmain:hal-03799479. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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: Contact - Sciences Po Departement of Economics (email available below). General contact details of provider: https://hal.archives-ouvertes.fr/ .

    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.