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Labour Mobility and Housing

This article examines whether housing tenure and regional differences in housing affordability have an impact on labour mobility. This relationship is important for understanding the sources of structural unemployment and impediments to economic growth. Using two sample surveys from the Czech Republic, this research reveals that at the individual level housing tenure is the most powerful factor determining willingness to change residence for employment reasons. A time-series regression analysis reveals that the impact of housing affordability on observed interregional migration patterns is relatively weak and that this effect is concentrated among the highly educated seeking employment in the capital, Prague. These results demonstrate that housing tenure has a significant impact on labour migration plans in case of unemployment and that the dynamic impact of regional differences in housing affordability on labour mobility is concentrated within the most highly skilled segment of the labour force.