The Effect of Homeownership on the Option Value of Regional Migration

Florian Oswald

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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.

Keywords: Migration; housing; lifecycle consumption; regional shocks (search for similar items in EconPapers)
Date: 2019-11
Note: View the original document on HAL open archive server: https://sciencespo.hal.science/hal-03799479
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Published in Quantitative Economics, 2019, 10 (4), pp.1453-1493. ⟨10.3982/QE872⟩

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Working Paper: The Effect of Homeownership on the Option Value of Regional Migration (2019)
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Persistent link: https://EconPapers.repec.org/RePEc:hal:spmain:hal-03799479

DOI: 10.3982/QE872

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