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Residential Mobility and Labor Market Transitions: Relative Effects of Housing Tenure, Satisfaction and Other Variables

Namkee Ahn () and Maite Blázquez Cuesta ()

No 2007-05, Working Papers from FEDEA

Abstract: This paper undertakes an investigation of the relationship between housing tenure, residential mobility and job mobility. The analysis is done for Spain, France and Denmark, using data from the European Community Household Panel (ECHP, 1995-2001). The econometric technique consists of a bivariate probit model that allows us to account for the simultaneity of behaviors in housing and labor markets. Our results confirm the Oswald hypothesis only in the case of Denmark, where homeowners are found to be less mobile on the labor market. In contrast, the effect of homeownership on job mobility is small in France and no effect is shown in Spain. Finally, our results reveal that, in all countries, mobility is satisfaction driven: Those less satisfied in their job (housing) are more likely to change job (house), and lower satisfaction in commuting time increases job mobility but not residential mobility.

Date: 2007-03
New Economics Papers: this item is included in nep-eec, nep-lab and nep-ure
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