Housing, Wages and UK Labour Markets
Olympia Bover (),
John Muellbauer () and
Anthony Murphy ()
No 268, CEPR Discussion Papers from C.E.P.R. Discussion Papers
There is a considerable literature concerning the effects on labor mobility of imperfections in United Kingdom markets for rented housing (such as the 1987 book by Minford et al. and several articles by Hughes and McCormick). This paper examines the interaction of labor and housing markets, including the owner-occupied sector, in a more general framework. Our analysis has implications for the behavior of aggregate wages in the UK and for the relationship between aggregate unemployment and unfilled vacancies, which in part reflects mismatch between jobs and people. Our empirical analysis reveals that lagged values of regional differentials in the ratio of house prices to earnings play an important role in both the wage and the unemployment/vacancies equations. In addition, lagged values of average house prices have a significant 'cost-of-living' effect on wages. Our evidence is consistent with cross-sectional evidence on the effects of tenure structure on mobility; we find some effects from the 1965 and 1974 Rent Acts.
Keywords: House Prices; Housing Tenure; Labour Markets; Labour Mobility; Unemployment; Wage Determination (search for similar items in EconPapers)
References: Add references at CitEc
Citations: View citations in EconPapers (14) Track citations by RSS feed
Downloads: (external link)
CEPR Discussion Papers are free to download for our researchers, subscribers and members. If you fall into one of these categories but have trouble downloading our papers, please contact us at firstname.lastname@example.org
Journal Article: Housing, Wages and UK Labour Markets (1989)
This item may be available elsewhere in EconPapers: Search for items with the same title.
Export reference: BibTeX
RIS (EndNote, ProCite, RefMan)
Persistent link: https://EconPapers.repec.org/RePEc:cpr:ceprdp:268
Ordering information: This working paper can be ordered from
http://www.cepr.org/ ... pers/dp.php?dpno=268
Access Statistics for this paper
More papers in CEPR Discussion Papers from C.E.P.R. Discussion Papers Centre for Economic Policy Research, 33 Great Sutton Street, London EC1V 0DX.
Bibliographic data for series maintained by ().