The Effects of Housing Distortions on Unemployment

Minford, Patrick; Ashton, Paul; Peel, Michael J.

doi:10.1093/oxfordjournals.oep.a041855

Cited by 24 publications

(14 citation statements)

References 4 publications

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“…22 Instead, the results are supportive of an earlier literature (e.g. Hughes and McCormick, 1981;Minford et al, 1988) that emphasises the role of the social rented sector in creating impediments to labour mobility and thus leading to higher levels of unemployment.…”

Section: Discussionsupporting

confidence: 54%

“…Early research focused on the effects of local authority housing policies, which were seen as an impediment to labour mobility, restricting the incentives for workers to move between regions in response to regional unemployment differentials (Hughes and McCormick, 1981;Minford et al, 1988;Pissarides and Wadsworth, 1989). The boom in the owner-occupied housing market in the mid-to-late 1980s led to a change in emphasis, however.…”

Section: Introductionmentioning

confidence: 99%

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Housing Markets And Regional Unemployment Flows In Great Britain

Robson

2003

The Manchester School

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The denitive version is available at www.blackwell-synergy.com Additional information: Use policyThe full-text may be used and/or reproduced, and given to third parties in any format or medium, without prior permission or charge, for personal research or study, educational, or not-for-prot purposes provided that:• a full bibliographic reference is made to the original source • a link is made to the metadata record in DRO • the full-text is not changed in any way The full-text must not be sold in any format or medium without the formal permission of the copyright holders.Please consult the full DRO policy for further details. AbstractOver the past 20 years, there has been a great deal of interest from academic economists and policy makers in the UK in the contribution of the housing market to regional disparities in unemployment. However, despite a considerable body of research, there remains a great deal of uncertainty concerning the role played by different features of the housing market in shaping the regional pattern of unemployment. In this study, we aim to gain a deeper understanding of this issue by examining the relationship between housing market variables and the flows into and out of regional unemployment. Our findings indicate that both the level of regional house prices and the housing tenure mix have significant effects on the rate of flows into and out of regional unemployment and hence upon the equilibrium rate of unemployment in a region. In particular, we find that regions with a relatively high level of house prices and/or a low proportion of social rented housing will tend to have a relatively low equilibrium rate of unemployment, other things equal.JEL code: J43, R23, R58 2

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Section: Discussionsupporting

confidence: 54%

Section: Introductionmentioning

confidence: 99%

Housing Markets And Regional Unemployment Flows In Great Britain

Robson

2003

The Manchester School

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“…Thus, he likens significant disparities in regional house prices to a form of regional policy. Hughes and McCormick (1981) and Minford et al (1988) focus on the differential constraining role of the housing system, but emphasise the restrictive role of publicsector housing on regional migration and estimate the effects of the tenure composition of housing markets on the propensity of labour to migrate.…”

Section: The Interregional Dynamics Of House Pricesmentioning

confidence: 99%

Spatial Dynamics of the Housing Market: An Interurban Perspective

Jones

Leishman

2006

Urban Studies

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A major unproven hypothesis in housing economics is that regional ripple effects are caused by household migration between regions. This paper examines household migration and price ripples at the level of local housing markets driven partly by the fact that such migration linkages are likely to be more pronounced between local, rather than regional, housing markets. Following a review of regional housing market studies, several hypotheses linking the existence of lead-lag relationships and cointegration with the scale of migratory linkages between local housing market areas (LHMAs) are proposed. Using private housing transactions data for Strathclyde, a sub-region of Scotland, the paper identifies two clusters of LHMAs that differ in terms of their migratory linkages with Glasgow, the hypothesised leading housing market of the sub-region. Tests for lead -lag relationships and cointegration confirm the link between migration and house price changes.

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“…Our own previous work (Hyclak and Johnes 1992 a, b) mirrors this trend at regional level, and this is a pattern which we follow also in the labor market modelling of the present paper. A handful of labor market studies have introduced the notion of housing market inertia as a source of unsatisfactory labor market performance (Hughes and McCormick 1987;Minford et al 1988;Bover et al 1989;Gabriel et al 1991;Case 1991).…”

Section: Introductionmentioning

confidence: 99%

House prices and regional labor markets

Johnes

Hyclak

1999

The Annals of Regional Science

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This paper examines some potentially significant interactions between local housing and labor markets. We use an error correction model with equations explaining the average manufacturing wage, the unemployment rate, the labor force and the average house price in an urban area. Estimates are reported for the Hartford, Houston, Fort Lauderdale and Milwaukee areas using quarterly data for the 1980 s. We find some evidence that unemployment and labor force changes affect house prices and that house prices have a significant effect on the size of the labor force.

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The Effects of Housing Distortions on Unemployment

Cited by 24 publications

References 4 publications

Housing Markets And Regional Unemployment Flows In Great Britain

Housing Markets And Regional Unemployment Flows In Great Britain

Spatial Dynamics of the Housing Market: An Interurban Perspective

House prices and regional labor markets

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