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Regional Labor Market Dynamics, Housing, and Migration

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This study explores the impact of plant‐level labor market dynamics and housing markets on gross migration flows. The internal and the external reorganizations of regional labor markets are shown to be related. An increase in internal turnover of jobs and workers in regional labor markets is found to increase net‐migration. This effect arises mainly from a reduction in out‐migration. Housing markets constitute constraints for migration. In particular, an increase in regional housing prices and a large share of owner‐occupancy housing discourages net‐migration to a region by reducing in‐migration. In contrast, the out‐migration rate remains largely unaffected by housing markets.

Document Type: Research Article


Affiliations: 1: Government Institute for Economic Research, Helsinki, Finland 2: Labour Institute for Economic Research, Helsinki, Finland

Publication date: 2004-08-01

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