Regional Labour Market Dynamics, Housing and Migration

Kari Hämäläinen and Petri Böckerman ()

No 284, Discussion Papers from VATT Institute for Economic Research

Abstract: The aim of this study is to explore the dynamics of regional labour markets in terms of migration flows. In particular, the study explores the impact of labour markets and housing markets on migration. The internal and the external re-organisations of regional labour markets are shown to be related. An increase in internal turnover within establishments in regional labour markets is found to increase net-migration. This effect arises mainly from a reduction in out-migration. Housing markets constitute binding constraints for migration flows through housing prices and the share of owner-occupancy housing. The results imply that an increase in regional housing prices and a large share of owner-occupancy housing discourages net-migration to a region by reducing inmigration. The out-migration rate remains largely unaffected by housing markets.

Keywords: Dynamics of regional labour markets, housing, migration flows, panel data, Labour market, Työmarkkinat, Regional development, Aluekehitys, Labor market and policies promoting economic growth, Työmarkkinat ja kasvua tukeva politiikka, C100 - Econometric and Statistical Methods: General, J110 - Demographic Trends and Forecasts; General Migration, J210 - Labor Force and Employment, Size, and Structure (by industry, occupation, demographic characteristics, etc.), J610 - Geographic Labor Mobility; Immigrant Workers, R230 - Urban, Rural, and Regional Economics: Regional Migration; Regional Labor Markets; Population, (search for similar items in EconPapers)
Date: 2002
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Journal Article: Regional Labor Market Dynamics, Housing, and Migration (2004)
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